Climate Change in the U.S. (and at home)

Pascal's Wager

God exists (G) God does not exist (~G)

Belief (B) +∞ (heaven) +1 (moral benefits)

Disbelief (~B) −∞ (hell) -1 (immoral consequences)

CC Exists CC does not exist

ActionDisaster averted

Greater efficiency, cleaner

Inaction Disaster BAU

Mitigation by Sector– Residential, Commercial, and Institutional Buildings Sector

• Building Equipment, Building Structures – Transport Sector

• Cars, Trucks, Aircraft – Industrial Sector

• Energy efficiencies and materials – Energy Supply Sector

• Low carbon fuels, decarbonization of flue gases and fuels, and CO2 storage; switching to nuclear energy; and switching to renewable sources of energy

– Agricultural Sector • Improved rice production, improved ruminant management, improved fertilizer

use – Forest Sector

• Slowing deforestation, Reforestation, Afforestation, Wood residue energy, – Solid Waste and Wastewater Disposal

• Solid waste source reduction (paper recycling, composting, and incineration), and through CH4 recovery from landfills and wastewater

– Economic Instruments• National Level changes in the current structure of subsidies, either to reduce

subsidies for GHG-emitting activities or to offer subsidies for activities that limit GHG emissions or enhance sinks; domestic taxes on GHG emissions; and tradable permits.

• International Level changes in international taxes or harmonized domestic taxes; tradable quotas; and joint implementation

A Business Perspective On Climate Change "The risks presented by climate change are too big to ignore…“

• Investment risk: questions of existing carbon footprint and likely abatement requirements and opportunities in making investment decisions will be material– whether as part of day to day management, expansion or in the context of acquisitions or financings as part of due diligence

• Insurance risk: some members of the insurance industry are asking insured to manage their climate change risk in order to benefit from comprehensive Directors and Officers liability cover

• Disclosure obligations: Initial Public Offerings are beginning to address climate change issues as a possible risk factor. Against this backdrop, boards would be wise to consider the anticipated impact of climate change issues on their business as part of the corporate governance process

A business perspective • Businesses need to play a key role in this process to

ensure its views are accounted for. Areas for action include: – Energy efficiency: many of the easiest wins derive from improving

energy efficiency in buildings, products and vehicles. Currently, regulation is still more an impediment than an impetus, but EU directives on energy efficiency are starting to have an impact and for example this will gradually influence commercial property values.

– Carbon capture: this is a key technology for the energy sector, which accounts for 30% of global carbon dioxide emissions. Not only is new regulation required to permit the financial support necessary to enable energy from carbon capture projects to compete with brown energy, but a regime to address longtail liability issues and to amend existing regulation will need to be developed.

– Forestry: protecting, maintaining and expanding tropical rainforest across the developing world is one of the cheaper abatement mechanisms. Historically it has not received as much focus because the emission reductions this generates are priced at a lower level than other abatement measures and have not been accepted within EU-ETS.

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Solar panels were installed last week on top of the dining hall. The panels cost $20 million to build, but the university will break even, officials said.

Renewable Energy ProjectsIn December 2009, the University System of Maryland (USM) Board of Regents approved the award of four renewable energy projects that will produce more than 20% of the annual electric needs for USM institutions and state agencies.

Thermal StorageThe University operates a thermal energy storage system that cuts energy costs and reduces energy consumption during hours of peak demand.

LightingHallways across campus now use 80 percent less energy than they did before a campus-wide lighting retrofit project started in spring 2008.

Dining ServicesIn January 2009, Dining Services launched its New Year’s Resolution to eliminate the use of Polystyrene foams in all non-licensed dining operations across campus

Green Roof on Cumberland Hall The new green roof will cover approximately 65 percent roof surface with approximately 6,000 square feet of plantings.

LEED®US Green Building Council

• The Leadership in Energy and Environmental Design (LEED) Green Building Rating System™ is the nationally accepted benchmark for the design, construction, and operation of high performance green buildings. LEED gives building owners and operators the tools they need to have an immediate and measurable impact on their buildings’ performance. LEED promotes a whole-building approach to sustainability by recognizing performance in five key areas of human and environmental health: sustainable site development, water savings, energy efficiency, materials selection, and indoor environmental quality.

• The UMUC Inn and Conference Center was the first LEED certified hotel/conference center in the United States– “Operating an eco-friendly hotel is not only good for the

environment, but makes good business sense. We’ve found that our guests also appreciate our efforts to protect the environment.”

Greening Your Home• Tune-up Your HVAC System

– Clean air filters regularly and have your heating and cooling equipment tuned annually by a licensed contractor to save energy and increase comfort at home.

– When it's time to replace your old equipment, choose a high efficiency model, and make sure it is properly sized and installed.

• Efficient Appliances– When you replace an appliance, look for ENERGY STAR®.

• Be Water Wise– Municipal water systems require a lot of energy to purify and

distribute water. Don't let water run while shaving or brushing teeth.

– Repair leaky faucets and toilets promptly. – These simple actions can help households save hundreds of

gallons of water each month: saving water, especially hot water, can reduce greenhouse gas emissions.

• Be Smart with Power Management– Did you know that your battery charger uses energy while

plugged into the wall even when you’re not using it to charge your phone, laptop, or PDA?

– Unplug your appliances when not in use. Adjust power management settings for your computer to conserve energy.

– Consider using a power strip that can be turned off when you're done using your computers, printers, etc.

– Turn off lights in unoccupied rooms.

Greening Your Home• Replace Low-Efficiency Lightbulbs

– Replace incandescent bulbs with energy efficient compact fluorescent bulbs (CFL). • Use Renewable Energy

– Solar energy can be used to heat homes, buildings, water, and to make electricity. Today, more than 200,000 houses in the United States take advantage of the sun's energy. Find out about renewable energy incentives in your state: http://www.dsireusa.org/

• Buy Seasonal Produce – Organic food tastes better and it’s kinder to the earth. – 30% of the fossil fuel used on farms goes into the making of fertilizers. – Get greener by buying items grown or produced within 100 miles and you’ll reduce the amount of

diesel fuel needed to ship food. – You can get fresher food and help small-scale agriculture by shopping at neighborhood farmers’

markets.

• Reduce, Reuse & Recycle– Recycle cans, bottles, plastic bags, and newspapers. – Support recycling by purchasing items that are reusable and/or recyclable. – When you recycle, you send less trash to the landfill and you help save resources that would be

used in manufacturing non-recycled products.

• Spread The Word!– Talk with your family and friends about climate change. – Let them know the ways you’re changing your lifestyle to help prevent more climate changes.

Greener on the Road• Think Before you drive…

– Save energy by carpooling, taking public transportation, riding a bike, or walking. – Another way to reduce your carbon emissions is to combine errands when you do drive.

• Cars & Renewable Fuels– Before buying a new or used vehicle, check out the EPA green buying guide

-http://www.epa.gov/greenvehicles/. – Another source for fuel economy ratings is located at: http://www.fueleconomy.gov/.– Highly fuel efficient cars, hybrids, and vehicles that use cleaner alternative fuels help reduce greenhouse

gases emissions.

• Deferred Maintenance is costly to you and the environment!– Reduce pollution from your current vehicle by getting regular tune-ups and making sure your tires are

properly inflated to achieve your vehicle’s optimal gas mileage. – Maintaining your vehicle properly helps prevent the need for unexpected repairs, saving you money and

stress

• Flights– for business travel, consider whether a phone or video conference will get the job done. While flying

emits less carbon per mile traveled than driving, the distances traveled usually translate to greater emissions overall.

– When you do need to fly, longer flight segments emit less carbon per mile than shorter flights. • The reason? Elevated carbon emissions during takeoff and landing are the same whether the you

are traveling 250 miles or 2500 miles.

• On vacation – Consider renting a bicycle to explore locally rather than renting a car

Let’s revisit “De-oil transportation

• We are the guys that developed and launched EV1, the first modern-day electric vehicle, back in 1996. We are also the guys that devoted tremendous resources to design, engineer, and market this vehicle. Although the technical innovation and marketing efforts behind the EV1 were unparalleled, only 800 people were willing to lease the EV1. Yes, the EV1 quickly became the worldwide benchmark for electric vehicles, but its timing wasn't quite right. When GM launched the EV1, gas was cheap, there wasn't a war in Iraq, and there was less discussion about global warming. There were far fewer reasons for people to make the trade-offs in their transportation lifestyle to make the EV1 work for them.

Saving the Planet Two Wheels at a Time

• Commuting by bike (most days) can cut gasoline consumption dramatically.  How much.  Let’s get do the math:– My truck (4 cylinder Toyota) has about a 14 gallon tank.  I fill

this once a month now which is roughly a third of my previous refill visits.  So, for argument sake, I am saving 9 gallons of gas a month.

• What does that mean to the atmosphere and greenhouse warming potential?

• More math…

Saving the Planet Two Wheels at a Time• Heat yield of gasoline = 5.5 x 103 megajoule (MJ) / barrel of

gasoline– interesting factoid ~ biomass (vegetation) heat yield is about 18 MJ / kg

of fuel.  No wonder we burn the black gold instead of wood chips.• The C coefficient for gasoline is 18.34 grams of carbon (C) per

MJ (i.e. how much C released per MJ of gasoline burned)• This yields about 100,000 (18.34 * 5.5E+03) grams of C per

barrel of gasoline.  – Convert barrels to gallons to get a real world number (42 gallons in 1

barrel)• So 0.02 * 100K of C = 2,400 grams of carbon per gallon.• But carbon is not widely used in climate assessments so we’ll

convert this to CO2.• Molecular weight of Carbon = 12 g.  Molecular weight of

Oxygen = 16.  Thus CO2 molecular weight is 44 g.• Convert C to CO2 (44/12) = 3.67 and multiply by 2,400 =• 8,810 g of CO2 per gallon OR 8.8 kg per gallon.

Saving the Planet Two Wheels at a Time

• 8.8 kg * 9 gallons less per month =  79.2 kg of CO2 less emission per month.

• This is equal to 0.08 metric tons of CO2 / month (1000 kg = 1 metric ton = 2205 lbs or 1.1 U.S. ton).

• So in a 12 months I will have reduced my CO2 emissions by 1 metric ton (12*0.08) or roughly 2200 lbs.

• For reference, this is half the weight of my truck less CO2 emitted each year to the atmosphere.

What’s your C footprint?

Reading

– Washington Post 2008. There’s a goldmine in environmental guilt.

– Economist 2008. Get the price right: What America can learn from Europe's attempts to cut carbon emissions

– Economist 2008. A changing climate of opinion?