Climate Compass Blog
Here in Washington we’re waiting for the snow to end and Congress to make progress on a comprehensive climate and energy bill – both can’t come soon enough. And although the federal government has been closed here for the past few days, the past few weeks have seen some significant progress by federal agencies on the climate front.
As part of an effort to lead by example, President Obama announced that the federal government will reduce its greenhouse gas pollution by 28 percent by 2020. Federal agencies have been working on developing their targets since the release of President Obama’s Executive Order 13514 on Federal Sustainability in October of 2009, which requires agencies to set a number of measurable environmental performance goals. This target is the aggregate of 35 agency targets and the Obama Administration believes it will “reduce Federal energy use by the equivalent of 646 trillion BTUs, equal to 205 million barrels of oil, and taking 17 million cars off the road for one year.” Later this year federal agencies will be setting targets for their indirect GHG emissions (looking for GHG reduction opportunities with vendors and contractors, implementing low-carbon strategies for transit, travel, and conferencing, etc.).
We’ve also seen indications that the impacts of climate change are to be formally considered in the operations of two prominent federal agencies. The Pentagon released a long-term strategy that for the first time recognizes climate change as a direct threat to U.S. forces. In the Department of Defense (DOD) Quadrennial Defense Review (QDR) Report–the legislatively-mandated review of DOD strategy and priorities—the agency noted that climate change will affect DOD in two broad ways. First, it will shape the operating environment and missions by acting as “an accelerant of instability or conflict, placing a burden to respond on civilian institutions and militaries around the world.” And second, that DOD will need to adjust to the impacts of climate change on its facilities and military capabilities and will need to work to “assess, adapt to, and mitigate the impacts of climate change”.
The U.S. Securities and Exchange Commission (SEC) has announced that companies should disclose to investors the potential risks and opportunities that climate change presents for their assets. Although the guidance is not a formal regulation, the SEC intends for it to “provide clarity and enhance consistency for public companies and their investors”. In addition to the physical impacts of climate change (floods or hurricanes, rising sea levels, water availability, etc.), examples of where climate change may trigger disclosure requirements include the impacts of climate legislation and regulations, international accords, and indirect consequences of regulation or business trends.
These recent developments, along with the President’s clear commitment to climate change and energy policy during his State of the Union address last month are very encouraging.
Speaking of making progress, its time for me to get back to shoveling snow.
Heather Holsinger is a Senior Fellow for Domestic Policy
In the past few weeks I’ve posted twice (here and here) on reasons why global warming could be increasing the frequency of heavy snow events in certain parts of the United States (and likely in other similarly situated places around the world).
In a recent post on his WunderBlog (Weather Underground Blog), Dr. Jeff Masters gives his take on this issue. Dr. Masters is co-founder and Director of Meteorology of Weather Underground, a weather service that provides real-time weather information via the Internet. Unlike me, he’s a real weather expert and I highly recommend his blog.
First among the big news items related to nuclear power is the official naming by the Obama Administration of a much-anticipated Blue Ribbon Commission on America’s Nuclear Future to recommend a safe, long-term solution for used nuclear fuel and nuclear waste. The commission, announced on January 29, will issue its final report within 24 months. Energy Secretary Chu noted that the commission is not tasked with recommending a site for a long-term waste repository.
In tackling climate change, a diverse transportation sector can contribute greatly to reducing greenhouse gas (GHG) emissions. In 2008, the transportation sector accounted for 28% of U.S. GHG emissions, according to the EIA. In achieving the goal of reducing emissions, transportation policy must reduce GHG emissions from travel without compromising the mobility of Americans. To that end, electric vehicles provide a much-needed alternative to gasoline and diesel powered cars.
Carmakers are responding to this challenge by designing plug-in electric vehicles (PHEVs) and all electric vehicles (EVs). Nissan’s Leaf, a new electric vehicle, is slated to hit showrooms throughout the U.S in late 2010. One of two Leafs seen in public was on display last week at the Washington Auto Show where the Green Car Journal named the Leaf its 2010 Green Car Vision Award winner.
At first, Nissan will likely place prospective buyers on a waiting list, but it anticipates ramping up Leaf production at a factory it is retooling in Smyrna, Tennessee. The company secured a $1.4 billion loan from the U.S. Department of Energy (DOE) last week to prepare the plant to manufacture the vehicles and the advanced batteries that will power them. DOE points out that the facility will “create up to 1,300 American jobs and conserve up to 65.4 million gallons of gasoline per year.” The 150,000 vehicle-per-year factory positions the U.S. as a leader in the next generation of low-emissions vehicle manufacturing.
At the DC auto show, the Nissan representative shared details about the vehicle along with the company’s program to distribute it worldwide. Nissan is partnering with Better Place, an innovative electric vehicle services provider, to sell the Leaf in Denmark and Israel in 2011. The company intends to make modifications to the Leaf’s chassis to support Better Place’s battery switch stations. The Leaf will also meet SAE’s J1772 standard for electric vehicle charging. Lastly, by laminating the lithium-ion battery packs in order to make them self-cooling, Nissan solved a complex technical problem without using a computer control system. More information about the Leaf is available on Nissan’s website.
The L.A. Time reports Nissan hints at a sticker price of less than $30,000, before accounting for the $7,500 federal tax credit for plug-in hybrid vehicles and electric vehicles provided in the Recovery Act. No pricing information was available at the auto show.
The three most important issues to Americans today are the economy, jobs, and terrorism according to the Pew Research Center for the People & the Press. If one makes the logical connection between protecting against terrorism and promoting energy security, Nissan is timely in releasing the Leaf in 2010. With the Leaf, the company will create American jobs to manufacture an affordable vehicle that lowers U.S. dependence on foreign oil.
Nick Nigro is a Solutions Fellow
In a letter to Secretaries Clinton, Geithner, and Locke, Attorney General Holder, and US Trade Representative Kirk, 19 business groups, including the National Association of Manufacturers, argue that new “indigenous innovation” programs are designed by the Chinese government to find “national champions” of industry that can be advantaged in a variety of sectors, including green technology, and create "barriers to competition." The Hillicon Valley technology blog over at The Hill notes that this concern comes in the context of rising trade conflicts between the United States and China.
This attention comes on the heels of increasing concern over China’s leadership in clean energy technology. As noted in this weekend’s New York Times piece on the subject, the country has become the world’s largest manufacturer of wind and solar generation equipment. Through industrial policy, China is trying to take advantage of the growing export market for power sector equipment of all types, especially clean energy.
We should have expected that China would be a strong competitor in the clean energy sector. Regardless of the outcome of continuing international climate negotiations, countries from Europe to most U.S. states to China itself have already made unilateral policy choices to increase the use of clean energy technology in the coming decades for a multitude of reasons. The demand will be tremendous for the manufacture of clean energy technologies, and there is potential for fortunes to be made in their export.
What should the appropriate policy response be? As the authors of the letter suggest, the US should promote fair access for American goods and services in foreign markets. Protectionist responses and trade wars have never helped any country grow its economy and create jobs.
But reducing protectionism is not enough to regain the American lead in the clean energy sector. The US needs to have a policy of its own that encourages innovation and gives the right incentives for US companies to compete globally. America is a land of innovation, and we should be the ones taking advantage of these new and growing markets, not ceding them to competitors. Part of the answer is for the US to put a price on carbon. Doing so would encourage innovation in the private sector and provide regulatory certainty for companies to make investments here in clean energy technologies. American ingenuity is second to none, and Congress needs to work on a climate and energy bill that provides the right framework for our businesses to flourish.
Michael Tubman is a Congressional Affairs Fellow