President's Signs Executive Order On Federal Sustainability

Oct 5: President Obama signed a new Executive Order on Federal Sustainability. The Executive Order (EO) challenges agencies to lead by example in energy and environmental performance and gives them 90 days to set a 2020 greenhouse reduction goal. It also sets targets for efficient, sustainable buildings, petroleum use reduction in fleets, water efficiency, waste reduction, purchasing green technologies and product, and supporting sustainable communities.

According to a blog post by Nancy Sutley, Chair of the Council on Environmental Quality (CEQ), "By fulfilling the Executive Order, the Federal government will demonstrate that economic performance and a healthy environment go hand-in-hand. And by putting Federal purchasing power to work -- more than $500 billion per year in goods and services -- the government can build on the momentum of the Recovery Act to help turn good entrepreneurial ideas into great American enterprises that create jobs.

According to a release from the White House, the President said, "As the largest consumer of energy in the U.S. economy, the Federal government can and should lead by example when it comes to creating innovative ways to reduce greenhouse gas emissions, increase energy efficiency, conserve water, reduce waste, and use environmentally-responsible products and technologies. This Executive Order builds on the momentum of the Recovery Act to help create a clean energy economy and demonstrates the Federal government’s commitment, over and above what is already being done, to reducing emissions and saving money."

The Federal government occupies nearly 500,000 buildings, operates more than 600,000 vehicles, employs more than 1.8 million civilians, and purchases more than $500 billion per year in goods and services. The Executive Order builds on and expands the energy reduction and environmental requirements of Executive Order 13423 by making reductions of greenhouse gas emissions a priority of the Federal government, and by requiring agencies to develop sustainability plans focused on cost-effective projects and programs.

The new EO requires agencies to measure, manage, and reduce greenhouse gas emissions toward agency-defined targets. It describes a process by which agency goals will be set and reported to the President by the Chair of CEQ. The Executive Order also requires agencies to meet a number of energy, water, and waste reduction targets, including: 30% reduction in vehicle fleet petroleum use by 2020; 26% improvement in water efficiency by 2020; 50% recycling and waste diversion by 2015; 95% of all applicable contracts will meet sustainability requirements; Implementation of the 2030 net-zero-energy building requirement; Implementation of the stormwater provisions of the Energy Independence and Security Act of 2007, section 438; and Development of guidance for sustainable Federal building locations in alignment with the Livability Principles put forward by the Department of Housing and Urban Development, the Department of Transportation, and U.S. EPA.

Access the White House blog post (click here). Access the release from the White House (click here). Access the 15-page EO (click here).

G-20: "Will Spare No Effort To Reach Agreement In Copenhagen"

Sep 25: Among many other broad, general commitments, the G-20 members meeting in Pittsburgh September 24-25, agreed that they "will spare no effort to reach agreement in Copenhagen," at the UNFCCC COP15 meeting in Denmark scheduled for December 7-18. The G-20 includes the 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the U.K. and the U.S., and a representative of the European Union. Some of the commitments related to energy, climate and sustainability are summarized as follows:

- Our Framework for Strong, Sustainable and Balanced Growth is a compact that commits us to work together to assess how our policies fit together, to evaluate whether they are collectively consistent with more sustainable and balanced growth, and to act as necessary to meet our common objectives.

- Over four billion people remain undereducated, ill-equipped with capital and technology, and insufficiently integrated into the global economy. We need to work together to make the policy and institutional changes needed to accelerate the convergence of living standards and productivity in developing and emerging economies to the levels of the advanced economies. To start, we call on the World Bank to develop a new trust fund to support the new Food Security Initiative for low-income countries announced last summer. We will increase, on a voluntary basis, funding for programs to bring clean affordable energy to the poorest, such as the Scaling Up Renewable Energy Program.

- To phase out and rationalize over the medium term inefficient fossil fuel subsidies while providing targeted support for the poorest. Inefficient fossil fuel subsidies encourage wasteful consumption, reduce our energy security, impede investment in clean energy sources and undermine efforts to deal with the threat of climate change.

- We call on our Energy and Finance Ministers to report to us their implementation strategies and timeline for acting to meet this critical commitment at our next meeting.

- We will promote energy market transparency and market stability as part of our broader effort to avoid excessive volatility. - To maintain our openness and move toward greener, more sustainable growth.

- We will spare no effort to reach agreement in Copenhagen through the United Nations Framework Convention on Climate Change (UNFCCC) negotiations.

In further details the G-20 members said, "Enhancing our energy efficiency can play an important, positive role in promoting energy security and fighting climate change. Inefficient fossil fuel subsidies encourage wasteful consumption, distort markets, impede investment in clean energy sources and undermine efforts to deal with climate change. The Organization for Economic Cooperation and Development (OECD) and the IEA have found that eliminating fossil fuel subsidies by 2020 would reduce global greenhouse gas emissions in 2050 by ten percent. Many countries are reducing fossil fuel subsidies while preventing adverse impact on the poorest. Building on these efforts and recognizing the challenges of populations suffering from energy poverty, we commit to:

"Rationalize and phase out over the medium term inefficient fossil fuel subsidies that encourage wasteful consumption. As we do that, we recognize the importance of providing those in need with essential energy services, including through the use of targeted cash transfers and other appropriate mechanisms. This reform will not apply to our support for clean energy, renewables, and technologies that dramatically reduce greenhouse gas emissions. We will have our Energy and Finance Ministers, based on their national circumstances, develop implementation strategies and timeframes, and report back to Leaders at the next Summit. We ask the international financial institutions to offer support to countries in this process. We call on all nations to adopt policies that will phase out such subsidies worldwide."

And, on the climate change issue they said, " Increasing clean and renewable energy supplies, improving energy efficiency, and promoting conservation are critical steps to protect our environment, promote sustainable growth and address the threat of climate change. Accelerated adoption of economically sound clean and renewable energy technology and energy efficiency measures diversifies our energy supplies and strengthens our energy security. We commit to:

(1) Stimulate investment in clean energy, renewables, and energy efficiency and provide financial and technical support for such projects in developing countries. (2) Take steps to facilitate the diffusion or transfer of clean energy technology including by conducting joint research and building capacity. The reduction or elimination of barriers to trade and investment in this area are being discussed and should be pursued on a voluntary basis and in appropriate fora.

"As leaders of the world’s major economies, we are working for a resilient, sustainable, and green recovery. We underscore anew our resolve to take strong action to address the threat of dangerous climate change. We reaffirm the objective, provisions, and principles of the United Nations Framework Convention on Climate Change (UNFCCC), including common but differentiated responsibilities. We note the principles endorsed by Leaders at the Major Economies Forum in L’Aquila, Italy. We will intensify our efforts, in cooperation with other parties, to reach agreement in Copenhagen through the UNFCCC negotiation. An agreement must include mitigation, adaptation, technology, and financing.

"We welcome the work of the Finance Ministers and direct them to report back at their next meeting with a range of possible options for climate change financing to be provided as a resource to be considered in the UNFCCC negotiations at Copenhagen."

One of the most controversial issues included in the G-20 statement was the stance on eliminating "fossil fuel subsidies." The American Petroleum Institute (API) President Jack Gerard issued a statement saying, "The Obama administration and Congress now face many difficult choices if they choose to comply with the G-20 commitment to phase-out 'fossil fuel subsidies.' Above all else, the president and Congress should not use this commitment as an excuse to raise energy taxes on American consumers and businesses. Does the president really think it wise to eliminate tax provisions that encourage investment in technology and exploration and development and would likely constrict future energy supplies, raise energy costs and kill jobs?

"The pledge made to the G-20 also raises questions about the administration's commitments to vitally important energy programs. Will the White House ultimately cut the Low Income Home Energy Assistance Program and deny our most vulnerable citizens winter heat? Will they eliminate the Strategic Petroleum Reserve and undermine America's energy security? And what about the Highway Trust Fund? What America really needs is energy from all sources. . ."

In an earlier September 23, release from API in advance of the G-20 meeting, Gerard said, "As President Obama prepares to meet with the leaders of the G-20 nations Thursday, he should be commended for noting that climate change is a challenge for both developed and developing nations. But his call to 'phase out fossil fuel subsidies' is a wrong-headed approach that should be seen for what it really is: A giant tax hike on American consumers. . ."

Access the G-20 complete Leaders Statement (click here). Access the G-20 Pittsburgh Summit website for more information (click here). Access a series links to White House fact sheets on the G-20 Summit (click here). Access a release from API (click here). Access the 9/23 release from API (click here).

UNEP/TEEB "Climate Issues Update" Calls For Investment In Ecosystems

Sep 2: A new climate issues update by The Economics of Ecosystems and Biodiversity (TEEB), a project launched by Germany and the European Commission in response to a proposal by the G8+5 Environment Ministers (Potsdam, Germany 2007), indicates that investing in restoration and maintenance of the "Earth's multi-trillion dollar ecosystems" -- from forests and mangroves to wetlands and river basins -- can have a key role in countering climate change and climate-proofing vulnerable economies. TEEB designed to develop a global study on the economics of biodiversity loss is hosted by the United Nations Environment Programme (UNEP). The issues update was launched by TEEB study leader Pavan Sukhdev, with German Federal Environment Minister Sigmar Gabriel; Director-General for Environment, European Commission, Karl Falkenberg; and UN Under-Secretary General and Executive Director of UNEP, Achim Steiner.

The update says the planet's biological diversity and 'ecological infrastructure' are increasingly being put at risk from the impact of climbing greenhouse gases. The update indicates that "natural systems represent one of the biggest untapped allies against the greatest challenge of this generation." The paper is part of a stream of work towards a final study in 2010.

The update underlines that an agreement on funding for forests is a key priority for governments attending the crucial United Nations COP15 climate convention meeting in Copenhagen in December -- just 95 days away. An estimated 5 gigatonnes or 15 per cent of worldwide carbon dioxide emissions are being absorbed or sequestrated by forests every year, making them the "mitigation engine" of the natural world. A release indicates that this could also be described as "green carbon."

Investing in ecosystem-based measures such as financing Reduced Emissions from Deforestation and forest Degradation (REDD) could thus not only assist in combating climate change but could also be a key anti-poverty and adaptation measure. Forests also provide services such as freshwaters, soil stabilization, nutrients for agriculture, eco-tourism opportunities and food, fuel and fiber -- all of which will be key to buffering vulnerable communities against the climate change already underway.

The TEEB team indicates in the Climate Issues Update that a more complete report on these and several other areas of relevance to national and international policy-makers will be published in November 2009. "However, in view of the climate change conference in Copenhagen, Denmark, in December 2009, we thought it appropriate to publish our climate-related conclusions and recommendations more urgently for policy-makers, negotiators, and the general public."

The Update addresses ongoing work in four domains which TEEB says it believes need to be highlighted in the run-up to Copenhagen as follows: "(1) Coral reefs: We now understand that the survival of these ecosystems is at risk. (2) Forest carbon: including forests in mitigation is a cost-effective way of preventing further emissions and removing CO2. Forests also provide cobenefits in the form of other ecosystem services. Giving rewards for these benefits is an important step towards a greener global economy. (3) National accounts: these currently do not measure natural capital, so it can not be managed well. The most urgent step is to include adequate measurement of carbon storage as this is an institutional prerequisite for a serious payment scheme for tropical forests. [and]

"(4) Public investment in ecological infrastructure: This has demonstrable value for adaptation to climate change, not only in terms of relevance and effectiveness but also in terms of cost-effectiveness. In the context of the current economic crisis and the fiscal stimulus packages unveiled by many nations, ecosystems represent an attractive area for high-return investment. our ‘natural capital’ can be a much-needed source of growth in a time of recession, a provider of new and decent jobs in a time of increasing unemployment, and a solution to persistent poverty, a vast human problem which we cannot ignore."

UNEP head Achim Steiner said, "It is clearly emerging that investments in the planet's ecosystem infrastructure can deliver the twin, Green Economy gains of curbing and cutting emissions while assisting vulnerable communities to adapt. Currently governments are considering multi-billion dollar investments in carbon capture and storage at power stations. Perhaps it is time to subject this to a full cost benefit analysis to see whether the technological option matches nature's ability to capture and store carbon -- a natural system that has been perfected over millions of years and with the multiple additional benefits for water supplies up to reversing the rate of biodiversity loss."

In the meantime, the United Nations Secretary-General Ban Ki-moon on September 2, standing on the Polar Ice in Norway said, "I feel the power of nature, and at the same time, a sense of vulnerability. This is a common resource for human beings, and we must do all we can to preserve this Arctic ice. The Arctic is ground zero for analyzing the impact of climate change. In the Arctic, climate change is accelerating much faster than in any other region in the world. I am here to see for myself just how much damage this fragile Arctic is suffering from as a result of climate change. The ice is melting faster -- drifting, you have seen while coming here -- many icebergs, the glaciers are drifting and retreating; this is a very alarming situation.

"I'm sending [a message] from the Arctic to all world citizens, particularly world leaders, to draw urgent attention to take action immediately, to preserve Planet Earth, to preserve all that we can do to help our succeeding generations to be able to live in a hospitable environment in a sustainable way. . . we are losing the glaciers at the rate of 150 cubic km per year, that is 150 billion tonnes a year. . . To generate political will, the United Nations is going to convene a summit meeting on September 22 in New York; we have invited all world leaders, we expect more than 100 world leaders to participate. I expect them to demonstrate their political leadership. I expect them to play [their role] as global leaders, addressing these challenges, which require global leadership, global solidarity. We do not have any time to lose. The time is short. We must seal the deal in Copenhagen in December. . ."

Access a lengthy release from UNEP with links to additional information (click here). Access the 34-page TEEB Climate Issues Update (click here). Access the TEEB Study website for extensive information (click here). Access a release and link to the complete statement from the UN Secretary-General (click here).

Law Firm Surveys Business Views On Climate Change & Sustainability

Oct 10: While U.S. businesses are concerned about compliance costs related to climate change legislation, those same companies still believe that the federal government should be doing more to combat global warming, according to a recent survey (released September 24, 2007) sponsored by the law firm of Pillsbury Winthrop Shaw Pittman and their Climate Change & Sustainability practice group. Though 60% of survey respondents said they worry about compliance costs related to climate change rules, 56% of private company respondents (and 66% of public ones) think the federal government should do more to help reduce or limit global warming, including the development and use of alternative and renewable energy.

San Francisco partner Michael Steel, co-head of Pillsbury’s Climate Change & Sustainability practice group said, “This reflects the dilemma that Congress and Americans as a whole face. Most people would like to see greenhouse gas (GHG) emissions reduced to help curb the effects of climate change, but serious questions remain about how best to do it and pay for it.” Steel said that these questions may help explain why some companies may be struggling with what type of green practices to employ, therefore delaying adoption, even as they are increasingly aware of environmental issues, including global warming.

The survey was conducted by the Research and Analysis Center of the U.S. Chamber of Commerce. Nearly 600 American businesses participated in the survey, which is believed to be the first to assess the impact of climate change issues across all industries and U.S. company demographics today, gathering responses from small family-owned businesses, large public multinationals and every size company in between. Pillsbury said it plans to repeat the survey periodically to track the progress U.S. businesses are making.

Some of the findings indicate that 57% of those surveyed say that in the past 12-24 months they have switched to using or selling more recycled materials or products, and nearly 49% have reduced their use of electricity. Another 48% participate in programs to properly dispose of computers and other technologies that leak radiation and other contaminants. Just 23% of those surveyed have upgraded or converted to cleaner technologies or equipment, while 21% have reduced their use of fossil fuels.

Only 13.3 % of survey respondents have conducted such an energy audit. Of those companies that have adopted one or more green practices, 64% say the switch has not raised operating costs, and one quarter report that their costs of operations have actually been reduced. Regarding new opportunities that climate change issues may offer, 35% of those surveyed responded favorably.

Regarding proposals related to carbon trading, Pillsbury said both public and private companies surveyed expressed disinterest. Just 2% of those surveyed have invested in carbon credits, and 25% of the respondents, mostly smaller business owners, were not familiar with any carbon credit program, which Pillsbury said "suggests far more education about carbon trading may be warranted for it to succeed as a viable alternative for emissions-heavy companies."

One surprising result was that 28% of public companies responding to the survey said they would prefer one federal law governing climate change rules while 22% favor individual state laws. Among the private companies, 31% would prefer one federal law and 19% individual state ones. Pillsbury indicated that they expected that public companies would favor a Federal law over individual state rules "because it generally costs far more to comply with numerous differing rules than a set of consistent laws and regulations.”

Access a release from Pillsbury (click here). Access the complete 12-page results report on the survey (click here). Access the Pillsbury Climate Change & Sustainability practice group website for additional information (click here). [*Climate, *Sustainability]

Ecosystem Challenges And Business Implications

Nov 21: A new publication -- Ecosystem Challenges and Business Implications -- produced by Earthwatch Institute (Europe), the World Conservation Union (IUCN), the World Business Council for Sustainable Development (WBCSD), and the World Resources Institute (WRI), is based on global scientific facts and projections from the UN's multi-year Millennium Ecosystem Assessment and interviews with a range of business leaders to assess the implications and strategies needed to respond to environmental challenges. The publication warns that companies must transform business models and operations if they are to avoid major economic losses caused by the current degradation of ecosystems and the vital services they provide.

The research indicates that many companies recognize the risks associated with degrading ecosystems and are trying to adapt accordingly, but most fail to associate healthy ecosystems with their business interests. According to a release from WBCSD a collective business response is therefore needed to address the scale of environmental change currently taking place. WBCSD President Björn Stigson says, “Business simply cannot function if ecosystems and the services they deliver -- like water, biodiversity, food, fiber and climate regulation -- are degraded or out of balance. There must be a value attached to natural resources, and businesses need to start understanding this value.”

The publication offers a detailed examination of the implications that water scarcity, climate change, nutrient overloading, biodiversity loss, habitat change and the overexploitation of oceans will have for the future of business. These include scarcity of raw materials, higher operating costs, government restrictions and reduced flexibility. It further cautions companies to prepare for these risks by measuring their impact and dependence on ecosystem services, taking advantage of emerging business opportunities and reducing their operational footprints.

The publication partners urge companies to pursue solutions that will help to conserve ecosystems, such as new energy efficient technologies and products, new businesses to undertake habitat restoration, and new markets, such as nutrient trading. The publication is the first of three to be produced by the four partners. The second will focus upon how new business models, markets and entrepreneurs can profit from responding to ecosystem challenges and the third will help business executives identify their dependences on ecosystem services and ways to retain them for the long term.

Access the WBCSD release (click here). Access the 20-page document (click here). Access information from Earthwatch Institute (click here). Access information from IUCN (click here). Access information from WRI (click here). [*Sustainability]