Climate Compass Blog

Companies are planning for Climate Risks

Photo by Ellie Ramm

Emilie Mazzacurati, founder and CEO at Four Twenty Seven, Inc., spoke at a C2ES-sponsored workshop on corporate climate resilience at the 2015 Climate Leadership Conference.

Many businesses are moving beyond identifying the potential risks posed by climate change impacts and are taking the next step: developing solutions.

More intense heat waves, rising sea levels, and heavier rainfall could lower crop yields and labor productivity, increase energy costs, damage property, and disrupt operations.

None of these impacts are good for business.

More than 80 individuals from companies, cities, and nonprofits shared their climate resilience ideas and experiences at a C2ES-sponsored workshop, “Emerging Best Practices for Identifying Climate Risk and Increasing Resilience,” at the 2015 Climate Leadership Conference in Washington.

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Public push can spur private investment in EV charging

This map shows that large segments of many major roadways in Washington state do not have any publicly available DC fast charging. Our report demonstrates how the private sector can be the predominant source of funding for publicly available commercial charging stations within approximately five years.

For electric vehicles (EVs) to hit the mainstream and make a meaningful contribution to reducing greenhouse gas emissions, they’ll need a robust public charging infrastructure that lets drivers go where they take gasoline-powered cars now. Our recent work for Washington state identified some promising ways to get the private sector to fund more of that infrastructure in the near term, and fund all of it eventually.

The C2ES study was commissioned by the Washington State Legislature’s Joint Transportation Committee and guided by an advisory panel of state legislators,  EV experts, and other stakeholders. The findings, which could be implemented in the state through a bipartisan House bill, demonstrate that, with continued public support and accelerated EV market growth in the near term, the private sector could predominantly fund commercial charging stations in about five years.

A frequent question about funding infrastructure for EVs is, “Why not just follow the gas station model?” Under that model, an investor would pay to install and operate equipment and make a profit by selling the electricity to charge an EV.

Putting aside the fact that gas stations make most of their money at the convenience store or repair shop and not at the pump, this business model doesn’t work for EV charging for three reasons. First, the cost of owning and installing EV charging equipment is high. Second, the market for EVs is small in most places and the demand for charging is uncertain. And third, EV drivers are not willing to pay a high price

The core issues in the Paris climate talks

Leaders at the February 2015 UNFCCC conference in Geneva. Photo courtesy UNFCCC.

The final year of U.N. talks aimed at producing a new global climate agreement kicked off this week in Geneva. As negotiators wrestle with the working draft of the new agreement, it’s clear that all the core issues remain very much in play.

The talks, under the U.N. Framework Convention on Climate Change (UNFCCC), were launched in 2011 in Durban, South Africa, and are to conclude this December in Paris. The aim is a post-2020 agreement “with legal force” and “applicable to all.”

The more immediate goal in Geneva is to produce a “draft negotiating text,” which technically must be in circulation at least six months before Paris. But the text emerging from Geneva will be very far from a finished product. The starting point this week was a 39-page collection of parties’ proposals forwarded from COP 20 in December in Lima. By mid-week, the working draft had grown to nearly 90 pages.

The unwieldy text reflects the wide disparities remaining on all the core issues in shaping the Paris agreement.

Countries will soon begin submitting their “intended nationally determined contributions” to the agreement. That these INDCs (focused primarily on constraining greenhouse gas emissions) will be “nationally determined” suggests that the agreement will have a strong “bottom-up” character. Much of what’s at issue is whether and how to blend in “top-down” elements to create a hybrid agreement that delivers both broad participation and stronger ambition.

6 rules for happy climate partnerships

One city, company, state or nation can’t solve our climate and energy challenges overnight. Meaningful progress requires a variety of approaches by multiple actors, and that’s why partnerships are critical.

The benefits, indeed, the necessity of partnering and collaborating on climate action is increasingly being recognized.

The MIT 2014 Sustainability Report notes that “a growing number of companies are turning to collaborations — with suppliers, NGOs, industry alliances, governments, even competitors — to become more sustainable.” Collaborating with non-traditional partners was the focus of this month’s National Association of Clean Water Agencies’ (NACWA) Winter Conference, where C2ES President Bob Perciasepe touted the benefits of water and energy utility partnerships. The Environmental Protection Agency (EPA) will recognize the importance of innovative partnerships for the first time in the upcoming 2015 Climate Leadership Awards to be announced Feb. 24 in Washington D.C.

Successful partnerships on climate and energy challenges, like successful relationships, take work. So in honor of Valentine’s Day, we offer the following six rules for strong partnerships:

Taking action on climate change is good business strategy

A new C2ES report highlights lessons useful for companies and policymakers as more states and countries consider carbon pricing to spur innovative technologies and cut emissions at the lowest possible cost.

The report, written for the World Bank’s Partnership for Market Readiness (PMR), examines how three companies — Pacific Gas and Electric (PG&E), Rio Tinto, and Royal Dutch Shell -- prepared for carbon pricing programs.

The PMR shares this type of information with developing countries to help them create their own market-based policies. We were pleased to partner with the PMR to explore how a few of the companies in our Business Environmental Leadership Council prepared for carbon pricing and we thank the companies for sharing their expertise.

The lessons they shared fall into two categories – what business can learn from other companies operating in carbon markets and what governments considering market-based climate policy can learn from business.