Climate Compass Blog

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.

Answers to 3 key questions about the hottest year on record

Last year was the warmest globally in the 135 years since records have been kept. That was confirmed today by the National Oceanic and Atmospheric Administration (NOAA) and the National Aeronautics and Space Administration (NASA).

What’s significant about one year’s temperature?

What does one record-breaking year say about climate change? Alone, very little, but 2014’s heat did not happen in isolation. It was part of a longer streak of warm years. The last 38 years have been warmer than the 20th century average. All of the top 10 warmest years have occurred since 1998. Taken together, these warm years demonstrate that the Earth’s climate has changed and continues to change. The “warm streak” also provides a strong argument against those who claim global warming somehow stopped in the last 15-20 years. Although it is true that the rate of warming since 1998 was slower than in prior decades, the longer-term picture is unequivocal. The planet is still warming up. And as we’ve discussed previously, the ups and downs that occur over a few years or even a decade should not be used to undermine (or unnecessarily embellish) the reality of the broad warming trend.

Another interesting aspect of 2014 is that the high-temperature mark was broken without much help from El Niño. El Niño events occur when a large area of the tropical Pacific Ocean maintains above-average temperatures for many consecutive months. So, when we have an El Niño, the planet has a good chance of being warm as a whole. El Niños helped make 1998, 2005, and 2010 some of the warmest years in the temperature record. However, in 2014, ocean conditions fell somewhere between neutral and a bona fide El Niño (see NOAA’s recent blog on the state of El Niño).

Global average annual temperatures since 1880, from NOAA and The dark red columns represent the 10 warmest years in the record. 2014 is the warmest year in the record.

Resolve to make an impact at work in 2015

If your New Year’s resolution is to make a difference, why not start at work?

A majority of us say we’d be more satisfied if we had a job where we could make a social or environmental impact on the world. A recent study shows Millennials especially see businesses as potential partners in helping them make the world a better place.

No matter your title or department, or if it’s just you working in your home office, you can help make your workplace a little greener and reduce the emissions that are contributing to climate change.

Here are 8 steps to consider giving a try:

Photo by Ellie Ramm

Cafeteria composting and recycling are great ways to cut food waste at work. 

Low gas prices tempt consumers to buy gas guzzlers, but they should resist

In the past six months, the price of gasoline in the United States has declined precipitously - from its June peak of $3.63 per gallon to less than $2 in some parts of the country now.

The effect this sharp price decline will ultimately have on greenhouse gas emissions is not yet known, but a reasonable estimate is that emissions will rise as less efficient cars and trucks become popular for the first time in years. Luckily for the climate, stronger federal fuel economy standards will mean that emissions from the transportation sector won’t rise nearly as much as they would have.

Using travel data from the U.S. Energy Information Administration (EIA), monthly vehicle sales data, and fuel economy calculations by Michael Sivak and Brandon Schoetle of the University of Michigan, we calculate that vehicles purchased in last five months will emit 7.8 million more metric tons of greenhouse gases than if car-buying habits before the gas price drop had continued. An average car emits about 43 metric tons of greenhouse gases over its useful life, so the additional emissions are about the same as putting 180,000 new cars and light trucks on the road.

The sudden plunge in gas prices can make it tempting to forget the lessons of the past.

Public policy, private investment needed to keep EV market growing in 2015

Sales of electric vehicles (EVs) were up 25 percent last year, and automakers are looking to boost sales further in 2015 with new and updated models. Clearly, EVs have moved beyond their infancy. But continued growth in the EV market will require smart public and private strategies to expand charging infrastructure so motorists don’t have to worry about running out of juice.

Advancing the deployment of low-carbon vehicle technology, like EVs, is essential if we’re going to achieve meaningful emissions reductions from the transportation sector, which is responsible for 28 percent of U.S. greenhouse gases. Globally, the problem is more acute as the number of light-duty vehicles on the road is expected to double to more than 2 billion by 2050.

Automakers will begin introducing their second generation EVs beginning this month with the 2016 Chevy Volt. While sales will likely jump because of the incremental improvements from the first generation Volt, more time is likely needed for batteries to improve and charging infrastructure to be deployed.

Our work for the Washington State Legislature shows that new business models to foster private investment in charging infrastructure will be vital, but public sector policies and incentives will still be needed in the near term to keep the market growing.