WRI established its U.S. office in 1982. We work to improve water quality, increase awareness of local climate change impacts, and identify cost-effective emissions-reduction opportunities in the United States. Learn more about our work in the United States.
This has been a big week for U.S.-China collaboration on climate change. Yesterday the U.S.-China Climate Change Working Group (CCWG), which was established in April by the Joint Statement on Climate Change, presented their report on bilateral cooperation between the two countries. Not only does it lay out actions to reduce greenhouse gas emissions, a close reading sheds light on important themes for the future of U.S.-China collaboration on climate change.
The report centers on five separate “action initiatives.” to address key drivers of greenhouse gas emissions in both countries. The U.S. and China make up more than 40 percent of global CO2 emissions, so significant collaboration between the countries is absolutely essential to addressing the problem. The five areas that the report singles out include: vehicle emissions; smart grids; carbon capture, utilization and storage; greenhouse gas data collection and management; and building and industry energy efficiency.
Although the report is built around these five initiatives, four big themes can also be seen:
Large electricity consumers such as Apple or DuPont have limited options for directly purchasing green power. End-user consumers can’t easily contract with renewable power generators; they have to work through electric utilities who act as intermediaries. This gives utilities excessive market power as the only potential buyers in the green power market.
Based on a model proposed by WRI, Google set a new precedent in the green power market by committing to a long-term Power Purchase Agreement (PPA) with an Iowa wind farm. This is the largest, longest-term wind deal ever closed in the country between a renewable generator and an electricity end-user, and was only possible because of its creative deal structure.
WRI has been actively engaging Green Power Market Development (GPMDG) companies, including Google, for several years to overcome barriers in the power markets and regulations that make it difficult for non-utilities to sign PPAs. Long-term PPAs are essential for renewable power generators, because they are needed to secure financing—yet the traditional model used by utilities is not suitable for electricity consumers.
WRI provided analysis and connections to technical experts that helped Google better understand the benefits of entering into long-term purchase agreements with wind developers. These long-term agreements help the wind developer secure more attractive financing than traditional short term purchase agreements do, while providing important price stability to the end user (the price of wind does not fluctuate). These contracts can be complex to structure and raise many technical and financial questions. WRI’s research helped Google find a workable approach to these contracts that can now be replicated in the market place. This model could increase the amount of wind power the commercial and industrial sector purchase.
The model created by the groundbreaking Google deal will open the door for private electricity consumers to sign long-term PPAs, creating a whole new stream of credit-backing and access to financing for renewable power generators.
Wading through the vast sea of global greenhouse gas (GHG) emissions data can be a real challenge. To help simplify the process and make such data more accessible, today the World Resources Institute is launching the Climate Analysis Indicators Tool, or CAIT 2.0.
The free, online portal provides data on GHG emissions from 186 countries and all 50 U.S. states, as well as other climate data. CAIT 2.0 allows users to view, sort, visualize, and download data sets for comparative analysis. By providing comprehensive emissions data in an easy-to-use tool, users from government, business, academia, the media, and civil society can more effectively explore, understand, and communicate climate change issues.
The global market for wood and other forest products is changing quickly. The industry has long struggled to address the problem of illegal logging, which damages diverse and valuable forests and creates economic losses of up to $10 billion a year. In some wood-producing countries, illegal logging accounts for 50-90 percent of total production.
But recent developments indicate that we may be turning a corner: Illegal logging rates worldwide have declined by about 20 percent since 2008.
This was the topic on everyone’s minds at the recent Forest Legality Alliance meeting in Washington, D.C. This meeting brought together nearly 100 members and experts representing a wide array of companies, trade associations, NGOs, and governments involved in the harvest, manufacturing, and trade of legally produced forest products.
The White House’s climate action plan aims to transform the U.S. electricity system in the coming decades. The President directed the Environmental Protection Agency (EPA) to develop and implement standards to reduce carbon dioxide pollution from power plants, double renewable energy in the United States by 2020, and open public lands to an additional 10 gigawatts of renewable energy development, enough to power more than 6 million homes.
The big question is: Are renewable energy sources up to the task of taking on a significant portion of the country’s electricity? Recent trends and data show that the answer to this question is a definitive “yes.”
Four big signs that renewable energy is ready for the limelight include:
While reactions to President Obama’s newly announced climate plan have focused on domestic action, the plan actually has potentially significant repercussions for the rest of the world. These repercussions will come in part through his commitment to limit U.S. investments in new coal-fired power plants overseas. If fully implemented, the plan will help ensure that the U.S. government channels its international investments away from fossil fuels and toward clean energy. The move sends a powerful signal—and hopefully, will inspire similar action by other global lenders.
President Obama’s newly announced National Climate Action Plan will make serious progress on reducing pollution and curbing climate change. But importantly, the United States can also save billions of dollars each year by fully implementing all aspects of the plan.
The world has been asking: How will the United States turn its climate change talk into real action? President Obama began to answer that question this week when he announced his National Climate Action Plan, laying out concrete steps to curb climate change at home and abroad, including a policy that would bar the U.S. from financing conventional coal plants internationally.
The concrete steps he described are vital--most importantly because they represent actions, not just words. But everyone should also take note of the starting point in his speech. It reveals the critical role the international climate change process can play in stimulating climate action.