Matt Banks, Senior Program Officer, Climate Change Program, WWF

Framing Climate Change The problem of disruption of global climate by human-produced greenhouse gases in the atmosphere is coming to be understood as the most dangerous and intractable of all the environmental problems caused by human activity. The problem is highly intractable because the dominant cause of the disruption – emission of carbon dioxide from fossil-fuel combustion – arises from the process that currently supplies nearly 80 percent of civilization’s energy. If the energy system is to look much different in 2050 than today, a major push to change it must start now. John Holdren (Harvard, Kennedy School of Government) UN Investor Summit on Climate Risk May 10, 2005

37% 37% OF ALL MAN-MADE CARBON DIOXIDE EMISSIONS ARE CREATED BY THE ELECTRIC POWER SECTOR SOURCE: International Energy Agency, 2003

The energy sector: Global Fuel Shares of Primary Supply

Business as Usual - Outlook to 2030 Oil Gas Coal Other Energy by Type MBDOE Energy demand will increase over 50% by 2030 –Driven by economic progress & population growth 80% of energy demand growth in non-OECD Energy efficiency trends to accelerate Oil, gas and coal remain predominant –Oil resources adequate to sustain growth –Gas market increasingly global –Coal growth linked to non-OECD economic growth Technology critical to meeting energy challenges

The Time for PowerSwitch! Is Now Today’s decisions will have an impact for the next 50 years Rising energy needs – a huge potential to reduce emissions through efficiency Wall Street: Firms with carbon management strategies win in the new operating environment!

Embrace a less carbon intensive power sector Support binding national cap on power sector CO 2 emissions Commit to take responsible steps towards clean energy 20% of electricity sold from renewables by 2020 and/or Energy efficiency increase of 15% by 2020 and/or Least efficient half of coal generation retired by 2020 PowerSwitch! Pioneers Lead the Way

The US is Key

The American People Over 80% of Americans believe that climate change is here and is a result of human action ¾ Of Americans agree that the USA should reduce its emissions and support mandatory legislation There is not a clear sense of urgency and concern about the cost of action, but a majority accept some cost Support for climate action is lowest among Republicans and wealthier Americans (>$75K) Support for climate action is generally weaker among men, Hispanics, older people and in rural communities Polling results are similar to those in Canada and Europe The difference: leadership

The States Renewable Energy Targets

State GHG Emissions Share Emissions from a number of US states larger than many nations Actions taken by US states can have as large an impact on global emissions as those taken by nations Further state action could begin to deflect emissions curve

Per Capita CO 2 Emissions (1998)

USA – Where is Washington? State and Local Action –Climate action plans in some 30 States North Eastern States regional trading system California auto emissions law –Renewable energy standards in 21 States –Companies supporting carbon limits –187 Cities ‘ratify’ the Kyoto Protocol vs. The Administration –Intensity targets v. real reductions (business as usual) –Continuing emissions growth (+14% since 1990) –Trying to pass the buck to large developing countries –Seeks to block action by States

What We Do: Influence US Climate Policy  Support the Climate Stewardship Act to establish carbon market and for a national Renewable Portfolio Standard  Support state-level action, e.g. California clean cars bill  Promote US re-engagement in global framework through the G8 and UN

Congress mandates US carbon market ecoregion resilience strategy Climate Witness MPA adaptive management polar bears USA - Bering Sea © WWF-Canon / Chris HAILS © WWF-Canon / Jürgen FREUND

Transform the marketplace in order to effect policy change Provide model companies for reductions of heat-trapping gases 11 Climate Savers companies Adopt clean energy solutions 7 PowerSwitch! pioneers Provide risk and liability analysis Raise awareness of consumers and executives What We Do: Engage the Private Sector

We seek to save a planet, a world of life.

A Trusted Brand Here in the US *Source: Edelman Study on Trust and Credibility, 2003

And in Europe *Source: Edelman Study on Trust and Credibility, 2003

Where do we focus our efforts?

Retreating Sea Ice

A Tipping Point April 2004 – Investors force corporate disclosure of climate change risk September 2004 – BusinessWeek feature article raises CEO awareness of climate risk January 2005 – EU opens the doors to its economy-wide carbon market February 2005 – Russian ratification allows Kyoto Protocol to go into effect April 2005 – Duke Energy to lobby for carbon tax because "the time has come to act" on climate May 2005 – GE commits to double its investment in technologies to reduce greenhouse gases June 2005 – California governor Schwarzenegger declares ambitious reduction aim of 80% by 2050 July 2005 – World Economic Forum statement to G8 Fall 2005 – Northeast Governors announce RGGI cap-and-trade system January 2006 – President’s State of the Union calls for federal spending on alternative energy to increase

Leaders Act Early Catalyst Paper – 70% below 1990 levels by the year 2010 IBM through 2004, exceeded annual reductions of CO 2 of 4 % Johnson & Johnson - 7% below 1990 levels by 2010 Lafarge - 10% below 1990 levels by 2010 Nike - 13% below 1998 levels by 2005 Novo Nordisk – 10% below 2004 levels by 2014 Polaroid - 25% below 1994 levels by 2010 Tetra Pak – 10% below 2005 levels by 2010 The Collins Companies - 15% below 1999 levels by 2009 Sagawa Express - 6% below 2002 levels by 2012 Xanterra – 10% below 2000 levels by 2015

Targeting: What types of companies will really make a difference? Interviews with 5 analysts indicated that Exelon, Xcel, Entergy, Edison Int’l, PG&E, PPL, Cinergy, Wisc. Energy, Mid-American and Alliant could be winnable (investor-owned) targets for 06’ Recruitment of smaller public power companies could help build support for climate legislation in key states (approx. 15) Public power companies seem to be the most in touch with public opinion and consumer demand and are therefore clean energy early adopters that should be recognized

Support from WWF & CECS Analyze emissions inventory Develop custom climate plan for real reductions Verify baselines and renewable energy procurement Identify reduction opportunities and develop targets Communications Support integration of Climate Savers in strategic planning Help develop brochures and training modules Benchmark progress against other leaders Provide peer to peer workshops to prepare for a carbon constrained world

Innovative voluntary action of high value to our 11 partners Emissions reductions by well over 10 million tons of CO 2 / year by 2010 = taking 2 million cars off the road. Meaningful action by business builds support for real climate policy response by the US. Climate is now a standard element of corporate strategy and environmental management systems. Annual Corporate Energy Management and Climate Change workshops in Washington expose opinion leaders to company results. Wall Street analyses uncovered financial threats, risks and costs faced by business. Results Achieved by Climate Savers

Questions that need to be resolved What companies will realistically make a difference in the national debate? How do we best manage relations with companies? Can we foster regular communication? Can we sweeten the benefits package for companies?