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California's Cap-and-Trade Program is Alive and Well

July 18, 2017 Add Comment Edit

This is the eighth installment in a series of posts on California's climate leadership. These posts address a wide range of related topics including economic benefits and renewable energy.

With unprecedented bipartisan support, California lawmakers have voted to extend the state's cap-and-trade program. This carbon pricing program is key to meeting California's ambitious carbon reduction targets. The plan puts a statewide cap on greenhouse gas emissions and allows companies to buy and sell pollution credits.

The Golden State has been a cap-and-trade leader for years and it has a current market value of $8 billion. Negotiations are ongoing to include Mexico in the joint market. Two Canadian provinces are part of California's carbon pricing scheme. Quebec is already part of the deal and Ontario is linking with the market this year. B.C. already has a successful carbon pricing plan and even the oil producing province of Alberta has signed on to a carbon pricing initiative. The Regional Greenhouse Gas Initiative, (RGGI) is composed of nine north east states (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont). The agreement caps and reduce CO2 emissions from fossil-fuel power plants that generate 25MW of power or more.

Using markets to combat pollution has proven effective. The argument for pricing carbon is compelling indeed some have argued that it may be the best way to reduce emissions. The president of the World Bank advocates putting a price on carbon and such pricing schemes are already widespread in countries around the world including Europe, China, Japan, South Korea, and Canada

California has passed a raft of increasingly stringent emissions reduction legislation. Although detractors have tried to suggest the state's cap-and-trade program is in serious trouble, the evidence shows that California's carbon trading scheme is a success story. As reported by Greenbiz, the most recent data (July 2017) indicates that California is only 3 percent away from its 2020 goal of reducing emissions to 1990 levels as required by AB 32. The article also makes the point that these reductions have been, "easier and cheaper than expected."

What is even more striking is that these emissions reductions have occurred alongside laudable economic growth. This is further evidence of the decoupling emissions and growth.

At the 13 previous California Air Resources Board’s (CARB) auctions, allowances have sold out at or above the floor price. However, at the last two auctions, demand was not strong enough for CARB to sell allowances at the price floor ($12.73 per ton).

This is because companies are not buying permits. Companies are not buying permits because they do not have to. As explained in the Greenbiz article, "they already held enough to account for their current emissions, or they expect to be able to make emission reduction for less than the cost of an additional permit."

Contrary to the assertion of detractors this does not prove that the scheme is failing, it may however suggest that California's climate and energy policies (ie performance standards) are working.

Despite some legal risks associated with court challenges the future of carbon trading looks bright in California. Gov. Brown has vowed to extend the program beyond 2020 and CARB has released a proposal extending the program to 2050. CARB’s new proposed regulation offers a stronger mechanism to correct for situations where supply exceeds demand. It does this by diverting unsold allowances to a reserve which provides downward pressure on allowances prices should cost pressures begin to emerge.

As reviewed in the Greenbiz article, "CARB’s cap-and-trade design has been fundamentally sound from the start, and only continues improving." For more information on California's cap-and-trade plan click here.

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Why a Carbon Tax May be the Best Way to Reduce CO2 (Video)
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Carbon Pricing and Emissions Trading a Global Review
US Cap-and-Trade: What and Why
US Cap-and-Trade: Positioning Your Business

Aussies Feeling the Heat of Global Warming

February 15, 2017 Add Comment Edit

Australia continues its warming trend and scientists know that this is due to anthropogenic climate change. Even though carbon emissions were flat for the third straight year, 2016 was still the hottest year on record. Sixteen of the 17 hottest years on record have occurred since the dawn of the new millennium. According to the World Meteorological Association, 2016 was 1.2 degrees Celsius warmer on average than temperatures for the preindustrial Earth. That is only .3 degrees Celsius below the upper threshold limit of 1.5-degree-Celsius. Extreme heat is not just a source of discomfort it can be deadly. The Australian Climate Council says that more people have been killed by heat in the last century than any other natural disaster.

Heat records fell like flies last year and this was certainly true in the Arctic. We know that the buildup of greenhouse gasses like carbon dioxide (CO2) cause global warming. In May 2016, the Mauna Loa Observatory recorded 407.7 parts per million of CO2 in the atmosphere, the highest levels of atmospheric carbon ever recorded.

At the end of last year in Australia, there was record heat and drought. The heat continued into the new year with January breaking temperature records in Sydney and Brisbane. In January Sydney broke more records than any month since record taking began in 1858. The hot weather is continuing into the middle of February with some of the hottest temperatures of the summer in Sydney and Melbourne. Even Queensland saw temperatures exceeding 40 degree Celsius. The extreme heat has also contributed to 48 forest fires in New South Wales. Previous research has shown that bush fires are related to climate change.

Inside Climate News reports that heat waves have become more frequent in Australia. This is the view of Sarah Perkins-Kirkpatrick of Australia's Climate Change Research Center at the University of New South Wales:

"In Canberra, Australia's capital, the number of heat wave days has doubled in the past 60 years. In that same time, the beginning of the heatwave season in Sydney has advanced by three weeks, and in Melbourne, heatwaves are hotter," Perkins-Kirkpatrick said. "What's really interesting about this event is that all the physical mechanisms that drive heat waves are not in place."

What makes the Australian heat even more remarkable is that it is taking place in the absence of the kind of El Niño and hemispheric wind patterns that normally drive warmer weather. Scientists agree that climate change has a salient role to play. Forest and fire ecologist David Bowman said anthropogenic global warming is making the Earth and Australia hotter.

"In the last few years it has crossed a line—the anomalous weather has become consistently anomalous. I am confident we are seeing climate change play out in bush fires," Bowman said. "We have frittered away precious time debating abstractions or missing the point entirely. Numerous extreme events, seem unfortunately, the only things to spur broader social change."

Australia is far from the only place hit by extreme heat. In parts of South America, records are also being broken and massive wildfires have consumed hundreds of thousands of acres.

As reported by the Guardian, Bureau of Meteorology climatologist Agata Imielska said that climate change is driving up temperatures.

“One factor is the ongoing warming trend – we’ve warmed by a degree in the past century and it’s not just about averages, we see increases in these extreme temperatures as well,” Imielska said. “It doesn’t just go for land temperatures, it also goes for ocean temperatures. In 2016 we saw the warmest ocean temperatures on record.”

The Australian Bureau of Meteorology said the heat will continue right through into March. Going forward the situation will only get worse. As greenhouse gasses continue to build up in the atmosphere the hot temperatures will increase.

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The Warming Temperature Trend Continues Despite Trump
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Rising CO2 Emissions and Ongoing Heat Records Especially in the Arctic
GHGs are Warming the Planet and Contributing to Disasters
Record Breaking Heat Suggests Accelerated Warming
In Australia Climate Policy is a Political Football
The Death of the Great Barrier Reef
Australia Can Dump Coal and Adopt Renewables
Beijing's Coal Plant Closures and Australia's Dirty Energy Projects
Australian Coal Development Projects to Move Forward Despite Concerns
Australia's Stranded Coal Assets
New Report on Extreme Weather in Australia

Agreement on a Pan-Canadian Carbon Pricing Scheme

March 04, 2016 Add Comment Edit

It looks as though Prime Minister Justin Trudeau's Liberals are moving forward with a national carbon pricing scheme albeit adapted to regional circumstances. On Thursday March 3, 2016, Trudeau announced that the federal government along with all ten provinces have agreed to a "comprehensive and ambitious plan" to put a price on carbon.

Carbon pricing (which includes both cap and trade and a carbon tax) leverages the market to disincentivize emissions intensive activities by making them more expensive while incentivizing low carbon technologies. In effect carbon pricing integrates the true cost of carbon which is currently not reflected in the market. Carbon pricing is the best way to help governments reduce emissions while minimizing economic impacts.

There are some compelling arguments that have been made in support of carbon pricing. In April 2015, 65 researchers in Canada published a report that indicated putting a price on carbon is key to reducing emissions in the country. With oil prices so low this may be the best time to put a price on carbon. Although carbon pricing was rejected by the previous Conservative government under Stephen Harper, it was part of the Liberal's raft of campaign promises.

Canada's new Prime Minister has said that he will respect the unique circumstances of each province and this appears to be the caveat that secured the support of detractors like Saskatchewan's Brad Wall. "There will be different approaches but pricing carbon is part of the solution that this country and all of its premiers will put forward," Trudeau told a news conference.

There are predictable detractors like David McLaughlin former President and CEO of the National Round Table on the Environment and the Economy and a Conservative Chief of Staff. In a Globe and Mail article McLauglin indicated that carbon pricing, particularly as it is being proposed in Canada, "is the least effective way to reduce emissions."

Canadians support climate action and carbon pricing. A poll published in January 2015, when Harper's Conservatives where still in power, found that the majority of Canadians said that Canada "should do more" to combat climate change. A total of 69 percent of those surveyed said that they favored a carbon reduction incentive and 59 percent said that they supported "increasing taxes on those activities and products that generate more emissions." While 78 percent supported, "lowering taxes on those activities and products that produce lower emissions," only 44 percent supported “introducing a national carbon tax that would be phased in over time.”

As reported by the CBC an Angus Reid Institute poll at the end of 2015, a solid majority of Canadians see climate change as a serious threat and want to see emissions reductions even if it increases their annual energy costs. The poll indicates that Canadians prefer a cap-and-trade system over a carbon tax.

Although the previous Conservative government claimed that carbon pricing would kill jobs in October last year Desmog reported on a Clean Energy Canada study that indicated action on carbon pricing could create a million jobs in the province of BC alone.

To further refute the claims of the Harper Conservatives, all around the world countries are adopting carbon pricing and the economic hit promised by detractors has not materialized. Carbon pricing has the support of the president of the World Bank and the World Economic Forum, it is already being implemented in Europe, China, South Korea and Mexico

In the US California and other states are showing the carbon pricing works, this includes the RGGI and there are already working carbon pricing schemes in Canada, BC has a carbon tax, Ontario and Quebec have a cap and trade system. Most recently the new provincial government in Alberta has come onside with a carbon levy.

Although the introduction of carbon pricing in Canada may appear to be a major step forward for climate action, there are concerns that the greening of Canada will be financed through the construction of new crude oil pipelines. This would be an oxymoron.

Trudeau and the provinces will meet again in six months to deal with the specifics of the plan.

Related
A Compelling Argument for Carbon Pricing
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Why we Should Put a Price on Carbon
Why a Carbon Tax May be the Best Way to Reduce CO2 (Video)
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US Cap-and-Trade: What and Why
Green Capitalism

Primer on Sustainability in Small Businesses

March 13, 2015 Add Comment Edit

There are a number of things that small businesses can do to be more environmentally sustainable. This both lowers costs and enhances the reputation of your enterprise. A growing number of companies are reducing the environmental impact of their businesses, so engaging sustainability is also about remaining competitive. Increasing consumer interest in sustainability makes it ever more important for small businesses to be able to meet burgeoning demand now and in the future.

Initiatives can include very simple things like turning down the thermostat, turning off lights, paperless billing, double double-sided printing and recycling. They can also include more substantial efforts like retrofitting lighting systems with LEDs, installing solar panels and product redesigns that reduce energy and resource requirements.

Here are a list of sixteen relatively easy and affordable things that small businesses can do to be more environmentally sustainable:

Assessment and benchmarking

Whether you are a 2-person company or have a staff of 50, the first step is to identify areas that most need improvement. To do this perform a self-assessment, with a focus on energy, efficiency, resources and waste. When conducting your assessment look at every detail including printing, shipping and even office lunches. As part of your sustainability assessment establish benchmarks. Having a base from which to measure success will help you to measure the impact of your initiatives. To create this benchmark, go through your daily activities from start to finish. Go through your day and write down everything that you do. Generate a list and identify areas that generate maximum impact.

Planning

Integrate your assessment into a cogent sustainability plan that focuses on areas of improvement. Use your plan to integrate the changes you can make in your company to maintain and increase your environmental sustainability. This plan should outline your company’s environmental philosophies as well as your mission statement.

Energy usage

Increase awareness of energy usage. Help make employees aware of energy usage and make them more conscientious about saving energy. Develop programs that raise employees’ consciousness of behaviors that contribute to high energy usage and that reward them for lowering costs by turning off lights and equipment when they are not in use, particularly overnight and on weekends. Additionally, keep thermostats on low settings in the winter and turn down the air conditioning in the summer. Keep doors and windows closed to prevent heat or air conditioning loss when heating or cooling.

Research local energy efficiency programs

Some states and municipalities have have energy-efficiency programs that offer discounts and assistance to businesses trying to make the switch to energy-efficient appliances or other energy saving improvements. These could include programmable thermostats, furnace replacements, boiler optimization controls and others. In addition, such programs caninclude a free energy assessment to offer you advice about which specific steps will be most effective for your business.

Lighting

Take advantage of natural light as much as possible. Replace incandescent lights with LEDs. These lights last far longer than traditional light-bulbs and also use significantly less energy. Although there is additional upfront costs, the investment pays for itself within a few years.

Maintenance

Routine maintenance can save energy. For example, clean all filters in the heating or air conditioning systems regularly, as well as in any exhaust fans. Check periodically on any automatic settings in lighting systems or the thermostat to ensure that they are at the most energy-efficient levels. Remove any unneeded light bulbs or replace them with more energy-efficient models where possible.

Water Consumption

Install low-flow plumbing fixtures. One very simple and inexpensive change is to change the aerators on your faucets. By putting in new low-flow aerators that reducing the flow of water from the faucets in your bathroom sinks and any other areas in the office that use water, you can reduce your bill every month and also stop waste. Buying new aerators is relatively inexpensive – just make sure to get the right fit from your local hardware store. Look for the EPA’s WaterSense Label when selecting a faucet, urinal or toilet. These labels show that the fixtures are “water-efficient,” meaning that they use a significantly lower flow of water than comparable models. This could save businesses the cost of thousands of gallons of water a year.

Fix Leaks

Another way of potentially saving money is to look for leaks in your faucets, pipes, or hot water heaters. Water leaks can cost you money every month and also mean wasting water that isn’t really needed. Many leaks can be fixed yourself with some rudimentary supplies.

Go paperless

Reduce the amount of paper you use in your office to the bear minimum. If an item can be saved on the hard drive of your computer, it doesn’t need to be printed. Process bills electronically and so online banking.

Employee buy-in

Encourage employee engagement by disseminating information, soliciting feedback and running contests for adherence. One of the best ways to get your staff to go green is by having the leadership model by example. When hiring, engage committed staff by looking for employees that are committed to a green philosophy. When working with your staff hold monthly meeting with staff to discuss their goals and get feedback.

Leadership

Once you have identified the environmental cause that your business will support, be a leader in that movement. Create initiatives that will build awareness as well as potential solutions. Donate your time and support your employees in doing the same. If you are able to, share your profits with environmentally-related causes. Actively lead by example.

Highlight achievements

Make sure you actively communicate your green efforts and accomplishments both internally and externally. There are a number of private companies that will assess and accredit truly sustainable companies.

Avoid greenwash

The environmentally friendly attributes of your efforts must be authentic. Whatever you do avoid being dishonest. When a customer's trust is betrayed it is hard to recapture. Lead by example and practice what you preach.

Support and collaborate

There are large numbers businesses that share your philosphy. Seek them out, partner with them, ask their advice and support their endeavors. No need to reinvent the wheel. You can achieve much more when working with a company whose experiences you can use. .

Inspire

Inspire existing and potential clients to be more environmentally sustainable. This is also a good way to introduce the benefits of working with your company. Stay positive and keep improving your business model.

Ongoing learning

Being sustainable is an ongoing process of improvement. Make sure you are up to date on your options by continually increasing your awareness of sustainability trends. Keep on top of the latest developments and best practices in corporate sustainability. When you find out something new, share your research with your customers. Doing so will not only build a trusting relationship between you both, but will provide you with the ongoing incentive to be on top of the latest developments.

Related
Small Business Owners Support Action on Climate and Energy
Why Small Businesses are Engaging Sustainability
Why Small Businesses are Well Suited to Sustainability
Why Small Businesses are Not Engaging Sustainability
Now is the Time for Environmental Sustainability
What Businesses Can Do to be More Environmentally Sustainable
Small Businesses Need to Engage the Green Economy

Why Small Businesses are Engaging Sustainability

March 10, 2015 Add Comment Edit

The size of the market opportunities is driving small businesses to engage environmental sustainability, as are concerns about survival and long term success. In addition to improving profits, reducing costs and mitigating against risk, engaging sustainability affords opportunities for collaboration and innovation.

While big corporate sustainability initiatives steal headlines, the small business community is also going green. For example, operational efficiency practices are increasingly commonplace even in small companies.

The rationale for engaging sustainability is largely about meeting and anticipating consumer demand. This translates to more customers, increased sales, higher revenues and even price premiums. Sustainability contributes to the crafting of a unique selling proposition, it helps to differentiate a company from the competition, and it offers a competitive advantage. Sustainability provides a host of reputational benefits. The latter contributes to word of mouth marketing, greater trust, improved loyalty, and enhanced employee recruitment and retention.

Small businesses also need to conform to the sustainability policies of companies in their supply chains and doing so increases the prospects for successful tenders.

Economic and environmental importance

The small business sector is the driving force behind most economies and their engagement of environmental sustainability is vital to their own viability and the prospects of addressing environmental degradation and global emissions reduction. Small businesses have a major impact on our economy and the environment. So their adoption of sustainability is crucial both economically and environmentally.

According to the US Small Business Administration, small and medium-sized (SMBs) businesses collectively account for 49 percent of US employment. There are almost 28 million small businesses in the US, and businesses with 5 or fewer employees represent 88 percent of businesses in the US. In the UK, more than 99 percent of the 4.9 million registered businesses SMEs.

Growth

As reported in Entrepreneur, a 2012 Office Depot poll indicates that 61 percent of small businesses were in the process of "going greener" and 70 percent of US small businesses plan to go green within the next two years. A similar picture emerges in the UK. According to Lloyds’ 2013 survey of SMEs in the UK, a quarter of businesses viewed sustainability as their top priority in 2014, while 52 percent recognized the cost benefits of implementing sustainable business practices.

There is evidence that small businesses are adopting increasingly sustainable practices. According to a report titled, "The Big Green Opportunity for Small Business in the U.S.," green market segments in the US are growing fast. In fact, growth rates of green segments are outpacing conventional segments in every industry where data was collected.

"The growth in green segment market share across the economy is unprecedented and systematic it’s clear that we’re hitting the tipping points where sustainable products and services have moved from fringe alternatives to industry norms," the report said.

Although there is growing interest in sustainability, small businesses are still not engaging at the same rate as large corporations. When it comes to sustainability, there are many reasons why small businesses are not as proactive as their corporate cousins. However, this belies the fact that they are ideally suited to sustainability.

Consumer demand

The growth in sustainability among small businesses is being driven by consumer demand. An Accenture study titled, Long-Term Growth, Short-Term Differentiation and Profits from Sustainable Products and Services, indicates that consumer demand is the salient driving force behind the transition to sustainability. Consumers want greener products and services and this is a growing trend that shows no sign of slipping.

A 2013 survey stated that 30 percent of consumers expect to increase the amount of goods and services they buy from socially responsible companies.

According to Cone Communications research conducted in 2013, 71 percent of Americans consider the environment when they shop. This is up from 66 percent in 2008.

The Big Green Opportunity report indicated that small businesses are seeing growing demand for green products and services and greater competition for green-oriented customers.

Higher revenues and competitive advantage

Sustainability generates a return on investment and offers a competitive advantage. There is now a growing body of evidence that proves the bottom line benefits and competitive advantages of being environmentally sustainable. “Going green attracts customers which results in a higher revenue,” says Colin Moore. Moore has implemented an energy efficiency policy for New York Client Solutions and he actively encourages small businesses to engage environmental sustainability.

According to The Big Green Opportunity report, small businesses are engaging sustainability for more than just ethical reasons. The national survey of more than 1,300 business owners suggests there is a compelling business case for going green. The survey indicated that green offerings tend to be profitable, often more profitable, than less environmentally beneficial offerings.

The survey showed that small businesses on the front lines of these green opportunities are capturing significant market share and benefiting from operational advantages. The survey results showed that 79 percent of survey respondents strongly agreed that offering green products and services gave their business a competitive advantage. The report indicated that 70 percent of those surveyed said that others in their industries have succeeded by offering green products or services. Of these,77 percent were successful in growing sales of their own green products and services through the economic slowdown (2008-2010).

A total of 62 percent of the small businesses surveyed offer green products or services because it’s a competitive requirement in their industry. Of these, 80 percent experienced increased sales. The report also revealed that a number of industries now have green minimums that are essential to remaining competitive.

Green products and services allowed 58 percent to expand their offerings and of these, 84 percent saw increased sales. A total of 76 percent of those surveyed strongly agreed that their green products and services are profitable and 89 percent reported that their green products and services are at least as profitable as their non-green offerings. Almost one third (31 percent) reported that their green products and services are more profitable than their non-green offerings.

Price premiums

Customers are willing to pay more for green offerings. The Big Green Opportunity report indicates that premium pricing can be attached to a green product or service. In both survey data and interviews, green business owners reported that, where a high trust relationship develops between a conscious consumer and an authentically green business, those consumers are willing to pay a premium for truly green offerings.

While there may be additional costs associated with green products and services, there is also room for premium pricing. These price premiums equal or exceed any additional costs. The margin for green products or services is the same or better than non-green offerings.

According to an Accenture study, businesses can charge a 19 percent price premium for green products and services. A 2013 report on green consumption indicates that almost half (47 percent) of young consumers are willing to pay more for eco-friendly products.

One of the upsides of premium prices to producers is the social capital generated. In addition to “word-of-mouth” marketing, socially driven businesses can secure capital from values-driven investors and creditors.

The greener the better

"The Big Green Opportunity" report indicates that the greener you are, the more profitable you can be. Leaders of deep green businesses reported greater growth potential, higher revenue growth, and higher sales prices than their less-green peers. Deep green businesses were significantly more likely then their less-green peers to report that their customers are willing to pay more for green products and services.

Deep green businesses were significantly more likely to report a competitive advantage from their green offerings than their lighter green peers. Overall, the results show that the greener the company, the better they tended to perform and the more likely they were to reach new customers.

Leaders of deeper green businesses were able to leverage trust to expand through cross-selling. Their core customers supported faster uptake of new offerings, leading to quicker ROI and profitability.

Deep green businesses in the study were far more likely than their lighter green counterparts to agree that their existing customers continue to support them because of their green attributes.

Deep green businesses were far more likely to report strong revenue growth from their green products and services than their light green counterparts through the recession . Many of the deeper green businesses reported that they were able to build revenues through the recession due to growing consumer demand. Deep green businesses benefited from relatively low customer attrition through the downturn. They were also able to leverage their insight into methods and channels for reaching new green customers to offset turnover and the negative effects of the recession.

Timing action

Although there is clearly value in going green, timing is important and there is a risk of getting too far ahead of demand when selling to mainstream markets. But as explained by Lauren Kelley Koopman, director for PwC’s Sustainable Business Solutions, "Sustainability is next-generation business thinking because it creates value, attracts customers, retains employees and improves capital and funding."

No matter the size of your enterprise, now is the time for environmental sustainability. All of these factors are likely to accelerate the adoption of sustainability by the small business community.

Source: Global Warming is Real

Related
Primer on Sustainability in Small Businesses
Why Small Businesses are Well Suited to Sustainability
Why Small Businesses are Not Engaging Sustainability
Now is the Time for Environmental Sustainability
What Businesses Can Do to be More Environmentally Sustainable
Business Case for Sustainability: Corporations, Banks and Investors
Best Practices and Case Studies

Why Small Businesses are Well Suited to Sustainability

March 05, 2015 Add Comment Edit

Small businesses and sustainability are a perfect match. Yet their are a number of reasons why they are not adopting sustainability at the same rate as their corporate counterparts. Just like their larger corporate cousins, small businesses should adopt sustainability policies. There are good reasons why it is easier to engage sustainability in a small business as compared to a large corporation.

While they may not have the deep pockets of big corporations, a small business is more nimble and able to change directions more quickly than large enterprises.

In 2011 three international accounting bodies released a comprehensive research report, titled "SMEs Set Their Sights on Sustainability" which includes case studies from the UK, the US, and Canada. This report highlighted the growing emphasis on sustainability from small and medium sized enterprises. It indicated that small and medium sized businesses partner well with sustainability because they are:

• More in-touch with employees: engaging and actively managing employees on an individual level.
• More in-touch with investors: closely working business relationships to meet the expectations of its stakeholders and investors.
• More in-touch with customers: working directly with consumers and business customers to deliver products that meet specific requirements and delivery expectations.
• More in-touch with suppliers: directly communicating with smaller set of business partnerships often directly integrated into the business operations. ,

Related
Primer on Sustainability in Small Businesses
Why Small Businesses are Engaging Sustainability
Why Small Businesses are Not Engaging Sustainability
Now is the Time for Environmental Sustainability
What Businesses Can Do to be More Environmentally Sustainable
Business Case for Sustainability: Corporations, Banks and Investors
Best Practices and Case Studies

Why Small Businesses are Not Engaging Sustainability

March 05, 2015 Add Comment Edit

Many small businesses fail to realize the value of sustainability and as a consequence they are not adopting sustainability as quickly as large corporations. Despite the convincing business case for sustainability, small businesses have yet to engage in large numbers. Small business owners commonly perceive sustainability to be overly complex and too costly. The result is that small businesses are often absent from discussions about sustainability.

The inaction of the small business community does not appear to be due to disinterest in environmental responsibility. According to a Lloyds’ survey, 61 percent of small and medium business leaders practice sustainability at home, while only 43 percent incorporate eco-friendly practices at the office.

Small businesses are understandably concerned about cost issues. While monetary concerns are a barrier of entry, the real obstacle to their engagement is inadequate awareness about the real value of sustainability. According to a report titled, "The Big Green Opportunity for Small Business in the U.S.," many small business owners lack the market insight to take advantage of green opportunities.

The truth is that small businesses are very well suited to sustainability.

Related
Primer on Sustainability in Small Businesses
Why Small Businesses are Engaging Sustainability
Why Small Businesses are Well Suited to Sustainability
Now is the Time for Environmental Sustainability
What Businesses Can Do to be More Environmentally Sustainable
Business Case for Sustainability: Corporations, Banks and Investors
Best Practices and Case Studies

The Merits of Carbon Pricing in B.C.

July 02, 2014 Add Comment Edit

Although the ruling Conservative federal government has fought any mention of a national carbon tax, individual provinces like British Columbia (B.C.) are moving forward with their own initiatives.

B.C. enacted a carbon tax in 2008 that covers about 70 percent of fossil-fuel consumption. B.C.’s carbon tax is currently pegged at $30 a ton. It has helped the province’s per-capita emissions decline almost 10 percent from 2008 to 2010. B.C.'s carbon tax has also played an instrumental role in convincing the US states to embrace carbon pricing. B.C. forged an agreement with Washington, Oregon and California to create the Pacific Coast Action Plan on Climate and Energy. Their plan is to prioritize clean energy and innovation through a strong economic incentive provided by a carbon tax or form thereof. These jurisdictions collectively represent 53 million people, and an economic region with a combined GDP of $2.8-trillion — making it the world's fifth-largest economy.

B.C.'s carbon tax is revenue neutral, which means the money generated by the tax funds personal and business tax cuts. Under the scheme gas cost an addition 6 cents per liter and families pay an average of $386 per household per year. Since 2008, the carbon tax has raised a total of $3.7 billion.

"What we've been able to show, and what we can show to a greater extent going forward with our jurisdictions, is that this can be good for business and good for the economy," B.C.'s Environment Minister Mary Polak said.

In 2013 Québec also introduced a cap-and-trade system as part of its membership in the Western Climate Initiative (WCI).

“The intuition behind carbon pricing is straightforward: we should tax things that we do not want, and making it more expensive will reduce pollution,” Marc Lee, senior economist at the Ottawa-based Canadian Centre for Policy Alternatives in Vancouver, said in a Jan. 13 report. “A carbon tax provides greater certainty around the price of GHG emissions, but poses a great deal of uncertainty around actual emission reductions.”

For oil-sands producers, carbon pricing may be the answer to reduce risk associated with carbon regulation and access to markets, said John Stephenson, a Toronto-based fund manager.

“What business hates is a lack of clarity,” Stephenson, who helps manage $2.7-billion at First Asset Investment Management Inc., said. “Even a bad tax would be better than discussions that are endless.”

A large and growing number of respected organizations are calling for a carbon tax, this includes the International Energy Agency, the United Nations, and the US Congressional Budget Office. The fact that B.C.'s economy is outperforming most of Canada speaks to the fact that you do not have to choose between a healthy environment and a strong economy.

By re-electing the Liberals twice since 2008, B.C. further demonstrates that a carbon tax can be politically viable.

© 2014, Richard Matthews. All rights reserved.

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Webinar - California Cap and Trade Program: Everything Businesses Need to Know

May 23, 2014 Add Comment Edit

The one hour complimentary webinar on California's Cap and Trade Program will take place on Wednesday, June 4, 2014 at 2pm EDT. It will provide an in-depth look at how California's carbon market works and show you what you need to know to craft a cogent compliance strategy.

As part of California’s Assembly Bill 32, the California cap-and-trade program seeks to reduce greenhouse gas emissions to 1990 levels. By placing a hard cap on emissions and setting up a market based mechanism, California has placed a price on carbon emissions covered by the program.

Companies covered by the cap-and-trade program must purchase California Carbon Allowances (CCAs) to cover their emissions of carbon dioxide equivalent (CO2e). Companies can also use offset credits as a lower cost alternative to CCAs for compliance.

In this webinar, ICIS carbon market analysts will give you an introduction into the carbon market and give you the insight you need to create your market strategy.

Whether you have a compliance obligation or are just interested in learning more about the landmark California cap-and-trade program please join us to get our view of carbon markets.

There will be time for questions.

Expert Panel

Jan Frommeyer, Director of Market Analysis, ICIS

Jan is Director of Market Analysis at ICIS, a global price, news and analytics provider in the Reed Elsevier Group. He is managing data, analytics and modelling of emissions trading markets with a focus on Europe, Australia and California. He joined ICIS following the acquisition of Tschach Solutions in June 2013.

Jan co-founded and managed Tschach Solutions together with Ingo Tschach since its inception in May 2010. He was responsible for political analysis and price modelling based on a behaviour-driven market model approach. Tschach Solutions provides carbon market data, forecasts and analysis for trade-active carbon market professionals in global offset markets and the EU ETS like major utilities, banks, industrials and also regulators.

Jonathan C. Ornelas, Director of U.S. Emissions Markets, ICIS

Jonathan is the Director of U.S. Emissions Markets for ICIS, a news and analytics provider part of the Reed Elsevier Group. Before joining ICIS, Jonathan had over 8 years of experience in the U.S. energy industry working for Sempra Energy and Noble Americas Energy Solutions. He brings experience from both the power and gas markets and focused on operations and analytics ranging from load and price forecasting, portfolio optimization, to regulatory affairs.

To register for this webinar click here.

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Video - Why a Carbon Tax May be the Best Way to Reduce CO2

April 26, 2014 Add Comment Edit

In this video Judd Legam, editor of ThinkProgress explains how a carbon tax works. This effort is of great importance in light of the current concentration of carbon dioxide in the earth's atmosphere which now exceeds 400 parts per million which is causing big changes in global temperatures, which means big changes in climate: more droughts, more wildfires, more extreme weather, more crop failure, and all of the other effects of global warming. According to Legam, the simplest solution is a carbon tax.

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Webinar - The Current & Future State of EH&S Regulatory Compliance

April 08, 2014 Add Comment Edit

The Current & Future State of EH&S Regulatory Compliance: How to Implement Compliance Programs that Reduce Risks & Increase Performance will take place on Tuesday, April 22, 2014 - 11am CT/12pm ET. This one hour webinar will be presented by Enablon, RegScan, and Environmental Leader.

Most companies today manage operations globally, across national borders. Regulatory requirements are constantly evolving and it’s becoming more & more challenging to understand which regulatory changes may impact your company.

This webinar will be hosted by experts from RegScan and Enablon.

Ned Ertel, CEO of RegScan, leading regulatory provider of regulatory compliance services to companies worldwide, will share his expertise on the latest EH&S regulations industries must comply with in the U.S. and across the globe. He will provide insight on how to manage the complexity of complying with multiple regulations in a cost efficient way.

A graduate of Georgetown University Law Center and Dartmouth College, Mr. Ertel joined RegScan in 1999. He has been President and CEO since 2004. Prior to that, he was a Litigation Associate with the Philadelphia-based law firm of Obermayer, Rebmann, Maxwell & Hippel. He also was an Assistant to the Secretary of the U.S. Department of Transportation, and interned in the Office of General Counsel. In 1993, Secretary Peňa gave him an exceptional service award.

Alexis Merydith, NA Product Manager at Enablon, will discuss how technology fits within an innovative EH&S program that goes beyond compliance to improve long term company sustainability. She will also present best practices from leading companies that are implementing efficient compliance strategies worldwide.

Alexis Merydith is the North American (NA) Product Manager at Enablon. Ms. Merydith is responsible for managing the Environmental and Compliance Product Management teams at Enablon NA for the long term roadmap, development, and marketing for the Air Quality (AQS), Water (WWS), Waste (WMS) Environmental Analysis (EA), Regulatory Compliance (RCM), Audit (ACS), and Proficiency (PROF).

Seating for this complimentary event is limited.

Click here to register.

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Bushfires, Climate Change and the Insane Policies of Australia's Federal Government

February 12, 2014 Add Comment Edit

Although you would never know it by looking at the policies of Australia's ruling government, there is a clear connection between bushfires and climate change. January's record breaking heat waves have created the right conditions for a number of Australian bushfires that broke out in February. High temperatures dried out the landscape and contributed to the spread of fires. The flames are being fanned by high winds. The largest bushfires in and around Snowy River, National Park, are producing dense clouds of smoke. The three largest fires have already burned around one hundred thousand hectares (this figure does not include a number of other smaller fires).

Fire officers in the state of Victoria are urging residents to be prepared to evacuate and a town of 3,000 is considering evacuating in Queensland after two years with almost no rainfall.

At one point Prime Minister Tony Abbott's climate denying Federal Government rejected claims that bushfires are linked to climate change. However, a report by scientists indicates the two are indeed linked. At the end of last year Abbott's top business adviser, Maurice Newman referred to the "delusion" of global warming. These comments came as Australia ended its hottest year in more than a century of data collection, with 2013 eclipsing the record set in 2005. The new government is working hard to increase coal exports including a terminal that endangers the Great Barrier Reef.

The Climate Council, which was called the Climate Commission before it was de-funded by the new Government, says climate change is increasing the probability of extreme fire weather days and is lengthening the fire season. Although the Climate Commission was dismantled by the new government, its members sought public donations to continue their work and now call themselves the Climate Council.

It is hardly difficult to understand that greenhouse gases, like emissions from coal plants, make the world (and Australia) hotter, and drier and this increases fire risks and fuels larger burns.

© 2014, Richard Matthews. All rights reserved.

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RGGI States' Third Consecutive Year of GHG Declines

February 07, 2014 Add Comment Edit

For the third consecutive year greenhouse gas emissions have fallen in the US states that are part of the Regional Greenhouse Gas Initiative (RGGI). These nine states (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) recorded a six percent decline in greenhouse gas emissions in 2013.

While some of this reduction is attributable to mild temperatures and the greater use of natural gas for power generation, it is also evidence that carbon trading initiatives are good for the planet.

Carbon emissions declined to 86 million short tons from 92 million tons in 2012. Electricity use was also down in four of the nine member states.

The nine states have capped emissions at 91 million tons for 2014 which represents a 45 percent reduction from the original cap. This will encourage more trading.

The five year old program has not been without its share of problems. The paramount issue has been an excess of carbon permits due the vast quantities of domestically produced natural gas, improved energy efficiency and a slow economy.

© 2014, Richard Matthews. All rights reserved.

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Australia's Stranded Coal Assets

January 31, 2014 Add Comment Edit

As a major supplier of coal to China, Australia has made a fortune helping China to meet its energy demands and in the process they have moved the world closer to irreversible climate change tipping points. China is the world's larger consumer of coal accounting for half the world's consumption. Australian Prime Minister Tony Abbott's new government has bet on coal which now accounts for 16 percent of the total value of Australian exports. China imports almost one third (30 percent) of its annual needs from Australia.

However, Australia's coal fired economy may be powering down due to declining demand from China. According to report titled Stranded Down Under, by the Smith School of Enterprise and the Environment (SSEE) at Oxford,

"Demand below expectations - and lower coal prices as a result - would increase the risk that coal mines, reserves and coal-related infrastructure could become mothballed or abandoned."

Abbott's new government ran on a platform of economic growth based largely on coal exports. China's growing concern about air pollution and climate change may very well strand Australia's massive investments in coal infrastructure assets. Australia's federal Bureau of Resources and Energy Economics (BREE) says that Australia intends to invest AU$100bn (US$90bn) in 89 mining projects over the next 15 years.

With the support of the Abbott government, coal producers want to expand the amount of coal exported from Australia. Currently 440 million tons of coal are produced per year in Australia, producers would like to see an additional 110 million tons of coal per year by 2020. That would bring Australia's coal production totals to 550 million.

In addition to declining demand Australia will also need to factor the costs of water as coal needs a lot of water for 'washing' and for driving steam turbines.

The combination of international pressure to reduce coal production, declining demand and growing water scarcity are destined to make it hard for the Abbott government to realize their dirty energy nightmare.

© 2014, Richard Matthews. All rights reserved.

Aussie, climate change, global warming, action, government, strategy, greenhouse gases, GHGs, extreme weather,

© 2014, Richard Matthews. All rights reserved.

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All I Want for Christmas is a Price on Carbon

December 23, 2013 Add Comment Edit

As 2013 winds down, there are promising signs that we may actually see a price on carbon in the U.S. In 2010, the cap-and-trade bill was killed in the Senate by the fossil fuel industry’s ubiquitous misinformation campaigns. However, a confluence of events have renewed hopes that we may yet see carbon pricing legislation that could significantly reduce U.S. carbon emissions.

Why we need a carbon tax

Paying for carbon pollution is the best way to put free markets to work to reign in global warming causing emissions. There is a virtual consensus among economists who say that putting a price on carbon is the most effective way to fight global warming. The case for carbon pricing is strong, this point has been repeatedly made by the World Bank and a number of economists including a team from the London School of Economics.

According to most analyses, carbon pricing is the most powerful regulatory mechanism we have to bring down emissions without wreaking havoc on the economy. Putting a price on C02 will allow market forces to drive down demand for carbon rich industries like fossil fuels and help to buoy cleaner low carbon technologies like renewable energy.

On a very pragmatic level, carbon pricing could enable the U.S. to achieve the pledges it has made at UN climate talks. This includes carbon emissions cuts of 17 percent below 2005 levels by 2020, and 80 percent by 2050.

Corporate juggernauts are onboard for putting a price on carbon

One of the reasons to be hopeful comes from a Carbon Disclosure Project (CDP) report which indicates that at least 29 big American corporations are actively preparing for a carbon tax. The companies in the CDP report include powerhouses like American Electric Power, ConAgra Foods, Delta Air Lines, Duke Energy, DuPont, Google, General Electric, Microsoft, Walmart, Walt Disney and Wells Fargo.

What is most surprising is that this list also includes five major oil companies (BP, Chevron, ConocoPhillips, ExxonMobil, and Shell). While they can hardly be called champions of a low carbon economy, they are, if nothing else, economic realists. They see the writing on the wall, and their actions are a strong indication that they see some form of carbon tax as inevitable.

Make no mistake about it, fossil fuel companies are not embracing the common good, they are acting in their own best interest. Preparing for the expense of a carbon tax is simply good business and for many, it represents a great opportunity. To illustrate the point, ExxonMobil, America’s wealthiest corporation supports a carbon tax because it has a vested interest. As the nation’s biggest producer of natural gas, it would profit from carbon pricing. Such a scheme would inflate the costs to the coal and crude oil industries far more than natural gas.

Republicans may be left out in the cold

Support for a carbon tax from corporate interests including fossil fuel companies could be a real problem for the GOP’s political future. Republican climate denial is a salient reason for the failure of cap-and-trade legislation in 2010. The GOP’s resistance to a science based assessment of climate change was underscored during the 2012 presidential elections and they continue to beat the climate denial drum to this day. As recently as Wednesday December 11, their ignorance was on display for all America to see. On this day, Republicans in the House of Representatives held sham hearings that called upon climate change denying scientists to reinforce their subterfuge.

Traditionally, corporate interests are the single most important support base for Republicans. However, as the companies responsible for global warming prepare to accept a price on carbon the GOP has reason to be concerned that they may be left out in the cold.

The Koch brothers may be the only friends in the oil industry that the GOP has left. Koch industries is still onside with climate denial and they continue to pressure Republicans to stay onboard the denial train. In 2012, all of the GOP’s presidential candidates had ties to the owners of Koch industries and they continue to use their front groups to oppose science and resist any form of carbon pricing.

However, Koch has repeatedly been exposed as the nation’s biggest purveyor of misinformation. Koch industries is a pariah even to the dirty and destructive fossil fuel industry. Republicans who embrace Koch may undermine their own election hopes and further tarnish the GOP’s already badly battered brand.

According to the latest research, Americans, including supporters of the Republican party, embrace the veracity of climate change and want government to do something about it. A Stanford University study showed that all states, even traditionally Republican states, acknowledge global warming and would like government to find ways to reduce climate change causing emissions. Recent election and ballot initiatives may also signal a change in American attitudes.

Republicans have effectively painted themselves into a corner. Changing public and corporate attitudes are stranding GOP policy positions. If Republican support is eroded they may not have enough political representation to thwart progress and this could in turn pave the way for carbon pricing.

Carbon trading in place and calls for emissions reduction from U.S. state governments

Carbon trading is increasing around the world with emissions trading schemes now operating in 35 countries, 13 states, provinces and cities. Europe already has the world’s biggest emissions market and China is launching its own schemes. In North America, new additions to the Regional Greenhouse Gas Initiative (RGGI) and the Western Climate Initiative (WCI) doubled carbon trading in 2012. There are now 48 schemes internationally and when added to the 7 in China, a total of 880 million people, representing about 20 percent of global emissions will be part of some form of carbon pricing.

As reported by Reuters on December 16, fifteen U.S. states (California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New York, Oregon, Rhode Island and Washington) are asking the Environmental Protection Agency (EPA) to adopt their carbon-cutting policies.

As part of President Barack Obama’s climate change strategy announced in June, the EPA has been directed to develop federal emissions standards for existing power plants. Now a coalition of states have told the EPA that they would like to see a “system-wide” approach to cutting emissions rather than working on individual power plants.

The Clean Air Act has stipulated that states must develop their own plans to meet EPA standards. States have been asked to provide feedback ahead of a planned June 2014 proposal which is scheduled to be finalized a year later. States that are part of carbon pricing schemes want to make sure that the EPA gives them credit for being early adopters.