U.S. States & Regions
States and regions across the country are adopting climate policies, including the development of regional greenhouse gas reduction markets, the creation of state and local climate action and adaptation plans, and increasing renewable energy generation. Read More
Governments, businesses and universities are focusing increasing resources and attention on what is now our nation’s largest generation, millennials.
Generally defined as those born between 1982 and 2000, millennials now represent the largest share of the American workforce. They’re more educated than prior generations. They’re more culturally diverse. And they’re more socially conscious.
How will this millennial generation shape our climate and energy future? Consider just two observations about how millennials want to live and get around -- housing and transportation.
A study found more than 6 in 10 millennials prefer to live in mixed-use communities. They’re more interested in living where amenities and work are geographically close. More than a third of young people are choosing to live as close as 3 miles from city centers.
As for transportation, millennials drive less than other generations. They’re opting for walking, biking, car-sharing or public transit. From 2001 to 2009, vehicle-miles traveled dropped 23 percent for 16- to 34-year-olds.
These preferences point to a future that is low-carbon and more sustainable. Dense urban living and mixed modal transportation options can result in reduced greenhouse gas emissions. A 2014 report from the New Climate Economy notes that “more compact, more connected city forms allow significantly greater energy efficiency and lower emissions per unit of economic activity.”
Millennial demands are influencing other sustainability topics, too. A Rock the Vote poll earlier this year found 80 percent of millennials want the United States to transition to mostly clean or renewable energy by 2030. An earlier poll from the Clinton Global Initiative found millennials care more than their parents’ generation about the environment and would spend extra on products from companies that focus on sustainability.
These facts indicate that this generation of 75.4 million people (in just the United States) wants to live differently than previous generations. Energy policies and technology habits will need to change to keep pace.
Government is paying attention, with President Barack Obama calling on millennials to tackle the challenge of climate change. Businesses, like energy providers, are working to deliver service in a seamless and more socially connected way. And universities are offering more sustainability-focused programs than ever before. The Association for the Advancement of Sustainability in Higher Education (AASHE)’s program list is growing, and university presidents are being asked by students to join the Climate Commitment to reduce emissions and improve resilience to climate impacts.
While millennials wield huge influence, the real power of change will come from all generations working together to develop innovative solutions and implement pragmatic policies to shape a low-carbon future and environmentally stable and economically prosperous planet for all who will inherit it.
Back in 2005, the U.S. Energy Information Administration projected that, under current policies, U.S. energy-related carbon dioxide emissions would increase nearly 18 percent by 2015.
They did not.
In fact, emissions fell – by more than 12 percent. So we were off by 30 percent.
As Yogi Berra may have said: It's tough to make predictions, especially about the future. We didn’t know then the impact a variety of market and policy factors would have on our energy mix. And we don’t know now all of the factors that could help us meet, or exceed, our Paris Agreement pledge – to reduce our net emissions 26-28 percent below 2005 levels by 2025.
U.S. emissions have fallen over the last 10 years due to factors that include:
- Growth in renewable energy
- Level electricity demand
- Improved vehicle efficiency
- A shift in electricity generation from coal to natural gas.
An unanticipated abundance of cheap natural gas has transformed the U.S. electricity mix. Coal-fired generation has fallen from 50 to 33 percent of the mix, while less carbon-intensive, natural gas-fired generation has risen from 19 to 33 percent.
The last 10 years also included a major economic downturn, which in 2009 drove electricity sales below 2005 levels. Despite a return to positive economic growth in the following year that continues through today, electricity sales have remained flat. Declines in manufacturing; improvements in energy efficiency, including in buildings, lighting, and appliances; warmer winters; and increased use of on-site generation like rooftop solar panels are the likely drivers.
What will happen in the next 10 years?
Certainly, the electric power sector will continue to decarbonize. It is not unreasonable to assume that natural gas will play an even larger role, while coal will play a substantial albeit diminishing role in the electricity mix.
Here are some other factors that are hard to quantify now, but could affect how quickly we transition to a clean energy future:
More zero-emission electricity
Increased clean and renewable electricity production, spurred by the Environmental Protection Agency’s Clean Power Plan and congressional tax credit extensions for wind and solar, could reduce renewable power costs, which have already been dropping. In other words, economies of scale could lead to higher deployments and lower emissions than currently forecast.
Wind and solar generation have grown nearly twelve-fold since 2005, nearly eight times greater than what was expected back then. In the 2016 Annual Energy Outlook, wind and solar generation are projected to increase 2.5 times by 2025. Historical precedent would tend to suggest that this is a highly conservative estimate.
However, sustained low prices in wholesale power markets from low natural gas prices and a proliferation of renewable electricity sources could harm another zero-emission source: nuclear. In particular, we could see natural gas continue to replace zero-emission merchant nuclear plants, moving us in the wrong direction, unless remedies are implemented. Also, low wholesale prices would tend to discourage new renewable generation.
More zero-emission vehicles
Electric vehicles (EVs) make up less than 1 percent of new U.S. car sales. But as their prices drop and range expands, the adoption rate could accelerate over the next 10 years, spurring important reductions from what is now the largest emitting sector. In one sign of growing demand, more than 400,000 people have put down a deposit for a Tesla Model 3 EV that won’t even be on the market until 2018.
Advances in battery storage could drive the transformation of the transportation sector and would provide obvious benefits to the electric power sector as well.
Meanwhile, automakers are exploring alternative fuels: natural gas, hydrogen fuel cells, and biofuels. And more than a dozen states and nations have formed a Zero-Emission Vehicle (ZEV) Alliance to encourage ZEV infrastructure and adoption.
Action by cities, the magnitude of which is not easily captured by national macroeconomic models, could lead to greater than anticipated emission reductions. Starting with the groundbreaking Mayors Climate Protection Agreement in 2005, initiatives are evolving to connect cities with each other to exchange knowledge and achieve economies of scale for new technologies.
More cities are exploring ways to generate additional reductions by 2025. These include: more energy-efficient buildings; better tracking of electricity and water use, innovative financing for more efficient generation, appliances and equipment; and improved public transportation and promotion of electric vehicles.
Last, but not least, steps taken by companies beyond regulatory requirements could produce greater emission reductions than we can foresee. Companies are investing in clean energy projects, reducing emissions throughout the supply chain, establishing internal carbon pricing, and helping customers reduce their carbon footprint. More than 150 companies have signed the American Business Act on Climate Pledge.
C2ES and The U.S. Conference of Mayors are teaming up to encourage city and business leaders to work together to reduce greenhouse gas emissions. Imagine how effective we can be when we coordinate climate action.
A 2015 UNEP report suggests that beyond each countries’ individual commitments to the Paris Agreement, actions by sub-national actors across the globe can result in net additional contributions of 0.75 to 2 billion metric tons of carbon dioxide emissions in 2020.
The United States has significantly reduced its greenhouse gases over the past decade, and has put in place policies ensuring continued reductions in the years ahead. With so many resources and tools at our disposal, it is clear that we can meet or exceed our climate goal. The only uncertainty is how we will do it.
Event: Innovation to Power the Nation
Technology, policy, and business experts discuss how innovative technology and policy can help us reach our climate goals at Innovation to Power the Nation (and World): Reinventing Our Climate Future at 1 p.m. ET on Wednesday, June 29. Watch the livestream.
Speakers include Patent and Trademark Office Director Michelle K. Lee; C2ES President Bob Perciasepe; Dr. Kristina Johnson, CEO of Cube Hydro Partners; Nate Hurst, Chief Sustainability & Social Impact Officer at HP; and Dr. B. Jayant Baliga, inventor and director of the Power Semiconductor Research Center at North Carolina State University.
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.
Cities often lead the way on greenhouse gas reductions, even though they rarely control the operation of the power plants that supply their energy. So how can city initiatives work together with the federal Clean Power Plan to reduce carbon emissions from power plants?
One option is the Clean Energy Incentive Program (CEIP). The U.S. Environmental Protection Agency (EPA) included this early-action program as part of the Clean Power Plan and recently released program design details.
The program is voluntary. If a state chooses to participate, then certain renewable and energy efficiency projects can receive early action credits, including a federal match from EPA. These credits can be used for complying with the Clean Power Plan, so they provide additional financial incentives for clean energy projects.
While we can’t know the full value of the CEIP without knowing how many states participate and how power plants in those states comply with the Clean Power Plan, C2ES estimates the CEIP could drive up to $7.4 billion of private spending on clean energy projects across the country.
A key aspect of the CEIP is its support of project development in low-income communities. Solar and energy efficiency projects in these communities receive double credit, and a special reserve pool is created to make sure these projects can compete with large renewables for credits. This type of project development can support four key goals of city leaders:
1. Taking action to fight climate change;
2. Reducing energy bills for low-income residents;
3. Bringing jobs and investment to the community; and
4. Delivering co-benefits of renewable energy like cleaner air and water.
City leaders have the know-how to channel CEIP credits to their communities, but they will need to partner with their states and businesses to succeed.
Once states choose to participate, city leaders can help articulate the benefits of the CEIP. Cities can also provide data and support to project developers to streamline CEIP projects, especially low-income community projects that often face more hurdles. For example, they could help businesses locate communities that would host projects, work with utilities to identify potential projects, and build public-private partnerships to finance renewable energy.
How does it work?
Step 1: EPA creates a matching pool for each state. The amount of CEIP match available is limited, and EPA will divide the total pool among the states before the program gets started. If a state does not use its full share of the match, those credits will be retired. In other words, the CEIP is use it or lose it. Half of each state’s pool is reserved for low-income community projects and the other half for renewable projects like wind, solar, geothermal, or hydroelectricity.
Step 2: Interested states include the CEIP as part of their implementation approach. States must submit a plan to EPA that details how they will implement the Clean Power Plan. States that opt-in to the CEIP would have to declare that as part of their plan, and then they could receive the EPA match. If states opt out, then clean energy projects within their borders would not be eligible.
Step 3: New clean energy projects are developed in participating states. CEIP credits go only to new projects – renewable projects that start generating electricity on or after Jan. 1, 2020 or low-income energy-efficiency projects that start delivering energy savings on or after Sept. 6, 2016.
Step 4: New clean energy projects benefit the community. CEIP credits are awarded for electricity generated (renewables) or saved (energy efficiency) in 2020 and 2021. Starting in 2022, these projects are eligible for other financing opportunities under the Clean Power Plan.
Step 5: CEIP projects receive tradeable credits. States will verify how much clean energy a project is producing, then distribute the appropriate amount of CEIP credits (half from the state’s pool and half from EPA) to eligible projects. The project developers that receive the credits can sell them to power plants that need them to comply with the Clean Power Plan. CEIP projects don’t need the credits themselves because only fossil fuel-fired power plants are covered by the regulation. The value of CEIP credits will be determined by how power plants reduce their emissions.
The dates in the CEIP design details may change, depending upon the outcome of the legal challenge against the Clean Power Plan.
The CEIP will be open for public comment this summer. Once finalized, it will help promote new clean energy development in communities across the country. Its focus on low-income communities aligns it with other city priorities in addition to fighting climate change. The short timeframe of the program will make public-private collaboration a key to success in attracting CEIP projects.
C2ES, through our Alliance for a Sustainable Future with The U.S. Conference of Mayors, can be a valuable resource on climate policies like the CEIP. By communicating technical information in a meaningful way and facilitating the conversations between cities and businesses, we can advance clean and efficient energy.
Details of the Clean Energy Incentive Program
Under its final Clean Power Plan (CPP), the U.S. Environmental Protection Agency (EPA) established the Clean Energy Incentive Program (CEIP) to encourage early action in meeting CPP objectives. The CEIP is a voluntary program for states to incentivize renewable and energy efficiency projects by giving them assets that will be tradable in Clean Power Plan markets. On June 16, 2016, EPA proposed design details for the CEIP.
This fact sheet has been developed by C2ES in support of the Alliance for a Sustainable Future, in partnership with The United States Conference of Mayors. For more information about the Alliance, see: http://www.allianceforasustainablefuture.com
Separately, cities and businesses have been showing tremendous leadership in reducing the emissions responsible for climate change and building resilience to climate impacts.
Imagine what they can do together.
By sharing research and analysis, building crucial connections, and fostering innovative partnerships, cities and businesses can accelerate progress toward our climate goals – progress we sorely need.
That’s why the Center for Climate and Energy Solutions (C2ES) and The U.S. Conference of Mayors are teaming up to create the new Alliance for a Sustainable Future. This alliance will help mayors and business leaders develop concrete approaches to reduce carbon emissions, speed deployment of new technology, and implement sustainable development strategies.
City and business action and input are vital as states consider how they will implement the Clean Power Plan, and as the U.S. works toward its Paris Agreement goal to reduce emissions 26-28 percent by 2025.
Through the Alliance, we plan to:
- Improve city and business engagement with state climate planning to add to our overall emissions-cutting efforts.
- Provide a forum for problem solving among cities, businesses, and states, and build platforms for more public-private partnerships on climate and sustainability.
- Identify best practices for coordinated action by cities, businesses, and states to reduce greenhouse gas emissions and deal with the consequences of climate impacts.
About the alliance
C2ES has long been a voice for pragmatic policy and a catalyst for constructive business engagement on climate change. Our Business Environmental Leadership Council, created in 1998, brings together industry-leading, mostly Fortune 500 companies across a range of sectors that are committed to climate action and support mandatory climate policy. C2ES has also been working closely with states and cities, including on implementation options for the Clean Power Plan.
The U.S. Conference of Mayors has long been a leader on climate change. In 2005, more than 1,000 mayors signed the Mayors’ Climate Protection Agreement, a landmark pledge to take local action to reduce carbon emissions. That pledge was updated in 2014 to also focus on making cities more resilient to climate impacts. The U.S. Conference of Mayors has encouraged federal and state cooperation with mayors to accelerate clean energy and energy efficiency.
Cities and companies in action
As the Alliance’s co-chair, Santa Fe Mayor Javier Gonzales, said: “Cities are our nation’s economic powerhouses, making them a key proving ground for policies to increase energy efficiency, deploy clean energy, and foster clean transportation.”
Cities are taking the lead in advancing more energy-efficient buildings; tracking electricity and water use, setting emissions reduction targets, and promoting electric vehicles. These programs make for stronger and more resilient communities and economies.
A number of cities, including Los Angeles, are even setting a goal of being powered by 100 percent renewable energy.
Companies are investing in clean energy projects, reducing emissions throughout the supply chain, establishing internal carbon pricing, and helping customers reduce their carbon footprint. More than 150 companies have signed the American Business Act on Climate Pledge, committing to steps such as saving energy and reducing water usage.
These steps, over and above regulatory requirements, could produce greater emission reductions than we can foresee.
Taking the next step
Climate change is global, but the impacts are local, and our communities are already experiencing them, including more frequent and intense heat waves, heavy downpours, and rising sea level. How we reduce climate-altering emissions will have implications for economic development, public health, and community wellbeing, especially for our most vulnerable populations.
Cities and businesses both have a strong interest in cost-effective approaches. Local-level and business innovation is critical to the success of the Clean Power Plan and other state and federal policies to shrink our carbon footprint. And these successes will point the way to a national strategy to help us transition to a clean energy future.
Separately, cities and businesses have already been demonstrating climate leadership. Together, we can put our foot on the accelerator and reach our goals.
June 21, 2016
Alliance for a Sustainable Future Announced
The U.S. Conference of Mayors and C2ES will bring together city and business leaders to focus on reducing power sector emissions and spurring sustainable development
WASHINGTON -- The U.S. Conference of Mayors (USCM) and the Center for Climate and Energy Solutions (C2ES) today announced a new alliance to spur public-private cooperation on climate action and sustainable development in cities.
The USCM-C2ES Alliance for a Sustainable Future will create a framework for mayors and business leaders to develop concrete approaches to reduce carbon emissions, speed deployment of new technology, and implement sustainable development strategies as a part of implementing the Clean Power Plan and responding to the growing impacts of climate change.
City and business leaders will identify barriers to action and share research and analysis on climate and sustainable development solutions. By building crucial links between cities and companies, the alliance aims to spur innovative partnerships and increase participation in state and national climate efforts.
“Since 2005, USCM has been leaders on climate change and reducing greenhouse gas emissions. Mayors and businesses must work together to develop sustainable solutions,” said Baltimore Mayor Stephanie Rawlings-Blake, The U.S. Conference of Mayors President. “The Clean Power Plan is the cornerstone of the nation’s strategy to achieve these reductions, which are becoming more and more important as the effects of climate change are upon us.”
“This alliance brings together mayoral political leadership and the pragmatic policy expertise of C2ES to advance climate change action and sustainable development, including by working with states to implement the Clean Power Plan” said Tom Cochran, CEO and Executive Director of The U.S. Conference of Mayors. “It is time for more concerted action and cooperation to spur ingenuity and expedite solutions.”
“Separately, cities and businesses have already been demonstrating climate leadership,” said C2ES President Bob Perciasepe. “Together, we can put our foot on the accelerator and reach our emissions-cutting goals.”
Santa Fe Mayor Javier Gonzales has been appointed by Mayor Rawlings-Blake to lead the effort for The U.S. Conference of Mayors, which will be approaching business partners with C2ES following the mayors' 84th Annual Meeting, June 24-27 in Indianapolis.
“Cities are our nation’s economic powerhouses, making them a key proving ground for policies to increase energy efficiency, deploy clean energy, and foster clean transportation,” said Mayor Gonzales. “Cities and companies have an opportunity to develop best practices to reduce greenhouse gas emissions and deal with the consequences of climate impacts.”
About The U.S. Conference of Mayors: The U.S. Conference of Mayors is the official nonpartisan organization of cities with populations of 30,000 or more. There are nearly 1,400 such cities in the country today, and each city is represented in the Conference by its chief elected official, the mayor. Learn more at www.usmayors.org.
About the Center for Climate and Energy Solutions: C2ES is an independent, nonprofit, nonpartisan organization that brings policymakers, business, and other diverse interests together to forge practical solutions to the pressing challenge of global climate change. Learn more at www.c2es.org.
Cities and states on the West Coast are teaming up to tackle one of the biggest sources of urban emissions: energy use in buildings.
Three governors, six mayors, and the environment minister of British Columbia adopted the Pacific North America Climate Leadership Agreement this month at the Clean Energy Ministerial in San Francisco. The leaders of British Columbia, California, Los Angeles, Oakland, Oregon, Portland, San Francisco, Seattle, Vancouver, and Washington state agreed to work together to address the energy use and greenhouse gas emissions from buildings.
Energy use in buildings is one of the largest sources of emissions in most cities. Buildings account for 52 percent of emissions in San Francisco, and 33 percent in Seattle. Even in smaller cities, the building sector remains a significant source of emissions. If cities can cut energy use in buildings, it can help them deliver on their ambitious climate mitigation commitments.
Since cities are already filled with buildings, improvements must be made to those that are already in use, rather than waiting for newer, more efficient buildings to be constructed.
A place to start is with benchmarking and disclosure policies, which are in place in 15 cities. Cities require building managers to record and report their energy use with the help of EPA tools. The resulting database can help identify opportunities for reducing energy use. And city officials can use the information to guide policy and create long-term strategies to reduce energy use and emissions.
To ensure that buildings achieve reductions in energy use, cities are complementing benchmarking and disclosure policies with additional actions, including: retro-commissioning, a process that assesses buildings to uncover low-cost operational improvements; supporting buildings through retrofit processes; and ensuring that buildings undergoing major renovations are brought up to current code.
Examples of these policies can be found throughout the West Coast and the U.S. at large. Seattle recently required commercial buildings 50,000 square feet or larger to undertake retro-commissioning processes every five years. Los Angeles is supporting property owners and managers to execute building performance upgrades to achieve 20 percent reductions in energy usage. And Washington, D.C., like many cities, requires major upgrades to existing buildings to meet current, more energy-efficient building codes.
With a comprehensive suite of policies aimed at commercial building efficiency, cities can take action to address one of their largest sources of emissions. We are heartened to see that the Western states and cities have committed to work together on this challenge, and look forward to seeing the local progress that might be accelerated with supportive state policies. By working together, cities and states can help shape policy, investment, and behavior change strategies that can become models for broader action.
Policy Considerations for Emerging Carbon Programs
With climate action gaining momentum around the country, policymakers at the city, state, and federal level are all considering policy tools they can use to achieve their goals. Many market-based options exist that can deliver differing co-benefits. Discussions and collaboration with other jurisdictions and with affected businesses can also improve the policy outcome.
City-level Climate Leadership in Boulder: The Climate Action Plan Tax
Cities across the United States are using a range of policy options to achieve their climate mitigation goals. One example is Boulder, Colorado, which has a long history of taking climate action, and is using a market-based approach to both reduce emissions and fund mitigation programs. In 2006, the city passed Initiative 202, the Climate Action Plan (CAP) Tax Initiative, which became the nation’s first directly voter-approved carbon tax. The tax charges consumers based on their fossil fuel-based electricity consumption, and the revenue is used to fund energy efficiency and renewable energy programs.