According to a recently released report by the World Wildlife Fund, 58 of the United States’ Fortune 100 companies set goals in 2012 to either reduce greenhouse gas emissions or use more renewable energy in their operations. However, oil and gas companies are lagging far behind in this movement. Eight of 11 domestic energy companies on the Fortune 100 have not set internal energy goals.
This is in direct contrast to 68 of the planet’s 100 largest companies who recognize the impact of global warming and are making investments in greenhouse gas reductions and renewable energy goals. Sadly, energy companies represent the lowest participation rate of any industry worldwide. The few exceptions are Hess and Chevron who have both set renewable energy and greenhouse gas targets, and ExxonMobil who set a greenhouse gas target.
Why have three quarters of the nation's industrial companies voluntarily set some sort of environmental target? There are a variety of potential reasons including: policy pressures, public relations or perhaps even the forward thinking that sees renewable energy’s potential to someday be less expensive than, or at least competitive with, oil and gas.
And why haven’t most oil and gas companies voluntarily set environmental targets? It may be because the very products they put on the market directly contribute to climate change. There is also a lack of urgency to act; little pressure comes from investors or policies. An example of a type of policy that was successful in the past is the Environmental Protection Agency or EPA's Toxic Release Inventory, which worked by making large companies publically accountable for which potentially toxic chemicals they use and where they are released. Then the information is posted on the EPA’s website for anyone to see.
The planet would really benefit from a similar policy focusing on oil and gas company emissions, or better yet, a broader climate change policy such as a national carbon tax or cap-and-trade program. There are other options that could pave the way towards a cleaner energy future. The federal government could require that a certain percentage of electricity come from renewable sources and offer further tax incentives for wind and solar production. Many companies are setting their own internal goals, but for others such as the majority of the oil and gas industry, they’re not going to do anything about increasing efficiency and reducing their carbon footprints until someone makes them.
In a telling and ironic move, coal industry giant BHP-Billiton, is replacing one of its coal export facilities in Queensland, Australia because of its vulnerability to increasingly frequent hurricanes from global warming. BHP-Billiton is an Australian coal company that produces one-fifth of globally traded coal for steel making and is the largest mining company on Earth. The upgrade represents a major investment in planning for climate change. In fact, the company’s coal operations are led by Marcus Randolph, who confirmed they are planning, “to rebuild the facility to be more durable to climate change.”
Readers of this blog already know that increasingly extreme weather events are the result of climate change in addition to the fact that many businesses are planning now for climate change’s effects. Why not a coal company too? The announcement makes it obvious that BHP-Billiton understands that climate change is real and the time is now to begin making changes even if the manufacture of their product contributes to the issue.
Randolph has even warned investors about the implications of remaining dependent on the non-renewable resources of fossil fuels by saying, “In a carbon constrained world where energy coal is the biggest contributor to a carbon problem, how do you think this is going to evolve over a 30- to 40-year time horizon? You'd have to look at that and say on balance, I suspect, the usage of thermal coal is going to decline. And frankly it should.”
When a company that mines and exports coal starts planning for climate change it means the writing is on the wall. Businesses and individuals alike should all be working to decrease carbon footprints and offset the remaining carbon emissions. Let’s give the planet a holiday present and start doing all we can this season to embrace a cleaner energy future.
It was a sad day in 2010 when Congress failed to pass cap-and-trade legislation. However, a study by Dallas Burtraw, a senior fellow at Resources for the Future, released this month says that the failure had the unexpected consequence of helping to lower greenhouse gas emissions. There are two reasons why U.S. carbon dioxide emissions are likely to be lower by 2020: regulatory measures and market changes.
This is not to say that there is no need for cap-and-trade or a carbon tax. On the contrary, they are still necessary to achieve long-term cuts in emissions and to help establish worldwide support on the issue of climate change. The American Clean Energy and Security Act of 2009 (ACES) was an energy bill that would cap the amount of carbon dioxide power plants and manufacturers could emit, and set up a system to trade for carbon offsets.
When ACES failed in the Senate after receiving approval in the House of Representatives, a series of piecemeal measures were put into place. This hodgepodge of regulatory measures put the U.S. on track to meet a pledge set by President Obama of cutting climate change emissions by 17 percent by the end of this decade. The first of which this blog already covered is Groundbreaking Fuel Economy Standards. President Obama pushed for higher vehicle fuel efficiency standards with automakers and the Environmental Protection Agency (EPA) when ACES died in the Senate. Also, the president is pressing for higher emission standards on coal-fired power plants.
Further regulatory measures in the wake of national cap-and-trade’s demise include California and some Northeastern and Mid-Atlantic states establishing their own cap-and-trade programs, and 29 states setting clean-energy requirements for utilities.
Market changes putting the U.S. on the path to lower carbon emissions by 2020 have been covered by this blog also. Low natural gas prices have been shifting the market away from dirtier coal as power plants' fuel of choice.
If ACES, also called the Waxman-Markey Bill, had passed the law would have barred the EPA from issuing carbon standards for power plants, refineries or factories. Furthermore, it may have very well headed off establishing the higher vehicle fuel efficiency standards. Lastly, under a national cap-and-trade program, any regional or state efforts would be offset by increased emissions elsewhere.
So the planet still needs further, faster and more wide ranging cuts in fossil-fuel use, but the U.S. is on the right path to curbing carbon emissions with the help of some regulatory measures and market changes.
Carbonfund.org Foundation Welcomes Macmillan Publishing to the Large Business Partnership Program.
Macmillan is a group of publishing companies in the United States held by Verlagsgruppe Georg von Holtzbrinck, which is based in Stuttgart, Germany. American publishers include Farrar, Straus and Giroux, Henry Holt & Company, W.H. Freeman and Worth Publishers, Palgrave Macmillan, Bedford/St. Martin’s, Picador, Roaring Brook Press, St. Martin’s Press, Tor Books, and Macmillan Higher Education.
As a key component of its sustainability initiative, Macmillan has set a goal to reduce the CO2 emissions generated by its annual business activities by 65% (over a 2009 baseline) by the year 2020. This includes the carbon emissions mitigation through Carbonfund.org including supporting renewable energy, forestry and biodiversity preservation.
Macmillan is well on track toward realizing this ambitious goal through the programs and actions undertaken to date. Some examples are:
- Rationalizing sourcing of paper based on the CO2 profile of the various mills that manufacturer the specific grades that Macmillan uses in printing its books.
- By mid-2013, completing the 3-year transition of their car fleet to 90%+ hybrid vehicles which will result in a reduction of over 800 metric tons of CO2 emissions per year from associated fuel savings.
- Significant investment in lighting retrofits at distribution/returns facilities that are 45-50% more energy efficient than the replaced configurations.
“Sustainability is part of the very mission of our company. Not just as a press release, not just around the edges, but in the very fabric of the place. It is as important as growth, as important as profitability. It may even be more important."
“While we’ve made great headway in reducing emissions in those areas under our immediate control, we know it will take a longer horizon to gain the required savings in areas where we wield influence, but cannot drive change just by force of will. That’s why we have pursued a partnership with Carbonfund.org to mitigate our total annual emissions by offsetting approximately 25% of that total through our sponsorship and support of several of the creative, verified, and geographically diverse programs that they administer,” says John Sargent, CEO of Macmillan.
Macmillan sets an important example for the publishing industry in both internal and external carbon reduction initiatives.
About Macmillan (http://us.macmillan.com)
Five years ago the CEO of News Corporation, Rupert Murdoch, claimed that news coverage of climate change in his media outlets would improve gradually. However, a recent study indicates that not only has that not happened, but that the preponderance of climate change information on Fox News primetime and in the Wall Street Journal’s opinion page is overwhelmingly misleading.
The Union of Concerned Scientists (UCS), a science-policy nonprofit, analyzed six months of global warming discussions on Fox News primetime programs (February 2012 to July 2012) and one year of Wall Street Journal op-eds (August 2011 to July 2012). UCS found that climate science was inaccurately covered in 93 percent of Fox News primetime programs and 81 percent of Wall Street Journal editorials.
The analysis found denial that climate change is caused by humans, dismissals of climate science as a legitimate science, and derogatory comments about select scientists. The worst part is that this misleading coverage encourages scientific distrust and portrays climate change as a left-wing idea, rather than based on scientific facts.
How many people are misled about climate science by these media outlets? Well the number is in the multi-millions. In 2011, Fox News Channel (FNC) was the United States’ most popular cable news channel. During prime time, FNC reaches a median of 1.9 million people plus. The Wall Street Journal has over 2 million daily readers and the largest circulation among American newspapers.
There is nothing wrong with fully examining and debating the merits of policies aimed at addressing climate change. However, it is ludicrous and irresponsible to deny the overwhelming body of scientific evidence that climate change is man-made and happening right now.
The analysis shows that sadly these media groups continue to waste time and effort that could be put to better use in combating climate change. Readers of this blog already know that global warming is man-made and many are putting their energies toward what they can do about it by supporting organizations such as Carbonfund.org. These climate change leaders seek out quick and affordable ways for individuals and businesses to calculate and offset the carbon emissions they generate.
The science is clear. Invest in renewable energy sources and support reforestation projects because the time is now to build a clean energy future.
Global warming currently cuts into the planet’s Gross Domestic Product (GDP) by 1.6 percent annually. This translates into $1.2 trillion, and the number is expected to double to 3.2 percent by the year 2030 if carbon dioxide emissions aren’t curbed.
According to the “Climate Vulnerability Monitor: A Guide to the Cold Calculus of a Hot Planet” report, the costs of inaction far outweigh the costs of taking on climate change. The report estimates reducing emissions at a cost of 0.5 percent GDP over the next 10 years.
And if money isn’t motivation enough, take a look at the almost 5 million deaths annually due to climate change. The report estimates it causes an average of 400,000 deaths each year, mainly from hunger and contagious diseases, plus an additional 4.5 million deaths annually from related global warming causes such as air pollution, dangerous occupations in the fossil fuel industry, and cancer.
The average of 3.2 percent losses to global GDP disguises the plight of poorer, developing nations who are disproportionately affected. The estimate for these countries, such as Bangladesh, for example, is an average of 11 percent of GDP by 2030. This is not to say that major economies avoid the effects either. China alone is estimated to lose more than $1.2 trillion in less than 20 years. By 2030, the total economic losses for the United States, India, and China will reach $2.5 trillion. According to the report, these three nations also will suffer over 3 million deaths annually, or half of all deaths.
A report released in July by the European Commission Joint Research Centre and PBL, the Netherlands’ environmental assessment agency calculated that last year global carbon dioxide emissions reached their highest point ever at 34 billion metric tons.
It’s time to tackle climate change now to reverse this scary trend and save lives. The price tag for doing nothing is too high.
According to a study by the American Bus Association, motor coaches are the most fuel-efficient transportation mode in North America, in terms of passenger miles per gallon of fuel. As a result, motor coaches are on average seven times more fuel-efficient than single occupancy automobiles, making motor coaches the most environmentally-friendly option for group transportation needs.
Carbonfund.org makes it simple for environmentally-conscious transportation companies, such as CarbonFree® partner The Convention Store (TCS), to further enhance their fuel-efficient coaches by offsetting fuel-related emissions. TCS specializes in providing ground transportation services to large-scale meeting planners, conferences and events throughout the United States and Canada.
TCS monitors, designs and implements the most efficient travel routes for their clients to decrease the distance of each trip; then they augment their large-capacity fuel-efficient transportation services by offsetting all carbon emissions from their motor coach services. This in turn supports Carbonfund.org’s clean air and carbon reduction technology projects.
“We chose to partner with Carbonfund.org because they not only offer ways to offset our carbon footprint but are building a network of other companies that care about our environment as much as we do,” says TCS CEO Sean Higgins. “It is amazing to watch the list of partners grow and know the amount of change that we will all bring by partnering with Carbonfund.org.”
In what is easily the best environmental action in a generation, this week, the Obama Administration announced new CAFE (Corporate Average Fuel Economy) standards for cars and light trucks (think minivans and sport utility vehicles). By 2025, these vehicles will be required to average 54.5 miles per gallon (MPG).
The National Highway Traffic Safety Administration regulates CAFE standards and the U.S. Environmental Protection Agency measures vehicle fuel efficiency. An agreement in support of acceptable standards was made between the government, automakers and their unions, and environmental organizations.
The stage for these historic fuel economy standards was set by an energy law enacted in 2007 under President George W. Bush. Additionally, the 2009 federal bailouts of General Motors and Chrysler were tied to better fuel efficiency.
Fuel-efficient cars and trucks were the U.S. auto industry’s saving grace. It makes good sense on multiple levels to continue these efforts. For one, 570,000 new jobs can be created by 2030. Not to mention saving consumers more than $1.7 trillion at the gas pump and reducing U.S. oil consumption by 12 billion barrels. This also translates to strengthening national security by lessening the country’s dependence on foreign oil.
What about fighting man-made global warming? The new standards will cut greenhouse gas emissions from cars and light trucks in half by 2025. This reduces emissions by 6 billion metric tons, which is more than the total amount of carbon dioxide emitted by the United States in 2010. We thank President Obama for his leadership on combating climate change, pollution prevention and national security.
Starting in 2017, the standards will be phased in over the course of eight years. New fuel-saving technology is projected to increase the cost of new car or light truck by $3,000 on average. This means consumers will pay a little more when they buy the vehicle, about $50 more a month over a five-year loan, but they’ll more than make up for it at the pump with expected gas savings per vehicle between $7,000 - $8,000. And that is good for the environment and our wallets.
Undeniably, the vehicle fuel-efficiency standards represent an unbeatable combination of protecting the environment and strengthening the economy. They’re also the nation's single largest effort to combat climate-altering greenhouse gases, but we can’t stop building our carbon-reduction portfolios now. Wonderful news like this should push us to continuing to find more ways to reduce our carbon footprint, as individuals and a nation. Now let’s go invest in some renewable energy projects!
Carbonfund.org supports several carbon reduction and energy efficiency projects such as the Truck Stop Electrification system, a project that is supported in part by Clean Air Cab’s fleet emissions neutralization program.
Clean Air Cab is central Arizona’s first carbon-neutral taxicab fleet; they partner with Carbonfund.org to calculate and neutralize the carbon emissions generated by its fleet of Toyota Priuses.
"We chose Carbonfund.org because unlike most companies selling offsets, Carbonfund.org is a non-profit. Clean Air Cab believes in giving back and we are happy to support a non-profit organization," affirms Clean Air Cab founder, Steve Lopez.
The company started by selecting the Toyota Prius, a fuel efficient vehicle for its taxicab fleet. A Ford Crown Victoria, the “traditional” taxicab vehicle, produces two and half times the amount of CO2 per year compared to the 2010 Toyota Prius. But the Prius still creates carbon emissions, so each quarter Clean Air Cab checks its total fleet mileage with Carbonfund.org to ensure that it has secured a sufficient quantity of carbon credits to completely neutralize fleet emissions.
Clean Air Cab’s mission “to make it affordable and convenient for everyone to go green” is in lockstep with Carbonfund.org. We are happy to partner with an environmentally conscientious company that provides a carbon neutral transportation alternative to central Arizona communities.
Just when we were about to succumb to the gloomy picture that is global climate change, a ray of hope breaks through the clouds. A technical report released this month by the U.S. Energy Information Agency calculated that energy related U.S. carbon dioxide emissions, which account for about 98 percent of total CO2 emissions, for the first four months of 2012 decreased to around 1992 levels.
The dramatic decrease is attributed to a switch from dirtier burning coal to cleaner natural gas. Almost everyone in the energy and environmental industries believes the shift could have major long-term implications for U.S. energy policy.
Scientists didn’t predict the amount of carbon dioxide being released into the atmosphere in the U.S. falling to its lowest level in 20 years in part because the decrease is not attributed to legislation limiting greenhouse gases such as carbon dioxide. The switch to natural gas was driven by the market.
The state of the economy, increasing efforts for energy efficiency and a growing utilization of renewable energy are certainly aspects that contribute to lowering U.S. carbon emissions. However, at the moment, the lion’s share is due to the current low price of natural gas. There has been an upsurge in shale gas drilling in the northeast, Texas, Arkansas and Louisiana, which has made natural gas more affordable than coal per unit of energy generated. Gas production is on the increase because of the modernization of the process of hydraulic fracturing, also called fracking, where highly pressurized water, sand and chemicals are inserted to fracture shale rock which releases natural gas.
While natural gas is a cleaner-burning energy source than coal, it is not emission-free. There is still some carbon dioxide emitted and drilling can have environmental impacts such as contamination of ground water, air quality risks, migration of gases and hydraulic fracturing chemicals to the surface, and surface contamination from spills and flowback.
There are also concerns that the rise in use of natural gas could stall renewable energy efforts. The ultimate goal should still be a mix of increasing energy efficiency and clean energy with the balance kept to a minimum of natural gas.
So the upshot is that the U.S. energy picture is far from perfect, but the news concerning a drastic decline in U.S. carbon dioxide levels is welcome and positive because it reminds us that there is still time to turn around the fate of the planet’s climate.