Pressroom

Forest Industry Must Act to Benefit from Climate Policy

Nate Kommers — Mon, 30 Jun 2008 09:35:16 -0400

While there are risks for the forest products industry, it largely stands to gain from efforts to address global warming due to new opportunities for sustainable forestry, according to a report released here today by the World Resources Institute.

As U.S. policy regarding climate change continues to build momentum, industries from across the economy are investigating the potential impacts to their businesses. The forest products industry is somewhat divided on how to address climate policy, mainly due to uncertainty around the financial implications.

“The next year or two is an important window for climate change policy negotiations in the U.S. and internationally. The industry needs a coordinated effort to improve the position of sustainable forestry to become part of the climate change solution,” said Andrew Aulisi, director of the markets and enterprise program at WRI. “Anything past this window may be too late. Competing industries are already moving quickly on their positions.”

WRI’s report, Trees in the Greenhouse: Why Climate Change is Transforming the Forest Products Business, details how climate change may affect the forest-based products industry. It concludes that, should a price on carbon be established in the U.S., the forest industry should soon have measures in place to capture the resulting opportunities.

The forest industry’s concerns include:

Opportunities for new revenue streams and markets for forest products that could benefit well-positioned companies.
Changes in the biological productivity of forests in some regions due to climate change.
Shifts in access to forestlands as they become more restricted and better managed.
Opportunities for forest products to be designated as “low carbon.”

The report outlines several steps that the forest industry and investors should pursue to best position themselves for economic conditions under a climate change policy. It also acknowledges that climate change policies may also bring new risks to the industry, and that investors and companies should develop appropriate risk-hedging strategies.

In addition to providing preliminary answers for forest companies and analysts, the report is also informing WRI’s ongoing efforts to help companies evaluate the risks and opportunities arising from changes in ecosystems, such those to forests. WRI is currently building a new corporate partnership dedicated to advancing business strategies, markets, and public policies that align corporate performance and ecosystem stewardship.

High Economic Values Placed on Coral Reefs in Tobago and St. Lucia

Paul Mackie — Sat, 14 Jun 2008 00:00:00 -0400

Direct annual economic benefits of tourism and fisheries resulting from coral reefs amounts to US$94 million in St. Lucia and US$44 million in Tobago. Those numbers amount to 11 percent and 15 percent of those Caribbean islands’ yearly gross-domestic product.

Tobago reefs“The health of Tobago’s reefs is vital to the island’s tourism product,” said Cmdre. Anthony Franklin, director of the Institute of Marine Affairs. “Tourists and local residents should benefit greatly in the future because of the advances these economic baseline findings could provide towards smart policies.”

The findings were announced here today along with the release of the full study, Coastal Capital - Economic Valuation of Coral Reefs in Tobago and St. Lucia, by the World Resources Institute (WRI), the Buccoo Reef Trust (BRT), the Institute of Marine Affairs, the Government of St. Lucia, and many others.

“Hopefully, knowing the economic value of the reefs will help policymakers develop and manage these beautiful and beneficial coastal areas with caution and care,” said Lauretta Burke, senior associate at WRI and lead author of the study, which puts dollar values on tourism, fisheries, and shoreline protection provided by reefs.

“Reef-valuation numbers arm government officials with powerful information they can use to make educated policy. They also provide the public and other interested parties with something they can use to push officials to make smart policies,” added Dr. Owen Day, director of the BRT.

Coral Reefs in Tobago

In Tobago, more than half of tourists dive, snorkel, or take a glass-bottom boat to the Buccoo Reef. Reef-associated tourism in Tobago contributes an estimated US$43 million in direct expenditure, such as food, lodgings, and ocean-related recreation. Two estimates not captured within the Tobago economy were also determined. One, the annual value of local residents’ use of the reefs and coralline beaches is estimated between US$13 million and US$44 million. Two, the additional satisfaction derived by participants above what they paid for dive and snorkel trips is estimated at US$1 million.

In St. Lucia, more than one-quarter of tourists dive or snorkel during their visits. The direct economic impact from reef-associated tourist expenditure was more than US$91 million last year. In addition, the annual value of local residents’ use of the reefs and coralline beaches is estimated between US$52 million and US$109 million. Additional satisfaction derived by participants above what they paid for dive and snorkel trips is estimated at US$2.3 million.

Fishery activity impacted by coral reefs have a much smaller economic impact, but provide other important benefits such as jobs, cultural value, and a safety net of food, especially during difficult economic time periods. The annual direct economic impact of coral reef-associated fisheries is estimated between US$700,000 and $US1.1 million for Tobago and US$400,000 to US$700,000 for St. Lucia.

Tobago, which is about 26 miles long and six miles wide, has coral reefs that protect nearly 50 percent of its shoreline. The annual value in 2007 of shoreline-protection services provided by coral reefs - in potentially avoided damages - is estimated to be between US$18 million and $US33 million.

St. Lucia, which is about 30 miles long and 14 miles wide, has coral reefs that protect 44 percent of its shoreline. The annual value in 2007 of shoreline-protection services provided by coral reefs - in potentially avoided damages - is estimated to be between US$28 million and $US50 million.

Funding for this project came from the MacArthur Foundation, the United Nations Environment Program - Caribbean Environment Program, the Ocean Foundation, the Henry Foundation, the Curtis and Edith Munson Foundation, the Netherlands Ministry of Foreign Affairs, SwedBio, the International Coral Reef Action Network (ICRAN), and the Buccoo Reef Trust.

MEDIA ADVISORY - Madeleine Albright to Discuss U.S. Poverty, Empowerment and the Environment

Jon Talbot — Fri, 13 Jun 2008 12:40:33 -0400

WHAT: The World Resources Institute and the Commission for the Legal Empowerment of the Poor, hosted by the United Nations Development Programme (CLEP), will discuss a new global survey of challenges faced by poor people which hinder their participation in fundamental aspects of civic and economic life. The discussion will apply these findings to the United States context.

WHEN: Tuesday, June 17, 2008
9:00 a.m. to 11:00 a.m.
(light breakfast at 8:30 a.m. precedes the event)

WHERE: World Resources Institute
10 G Street NE Suite 800, Washington DC 20002
(Metro: Red Line to Union Station)

WHO:
Jonathan Lash, president, World Resources Institute
Madeleine Albright, Ph.D., former U.S. secretary of state and co-chair, CLEP
Naresh Singh, Ph.D., executive director, CLEP
Beverly Wright, Ph.D., founder and executive director, Deep South Center for Environmental Justice

WHY: Despite robust social safety nets and legal protections available to Americans, millions of poor people in America continue to confront both formal and informal barriers to participation in civic and economic life. These barriers have denied them access to secure property rights, to the judicial system, and to sustainable livelihoods. What lessons can this country learn from a global survey of the planet’s poorest people? What lessons can a new administration learn as it turns to address the profound socio-economic challenges posed by climate change, water scarcity, and rising food and fuel prices?

RSVP: Jonathan Talbot, media officer, +1(202) 729-7828, jtalbot@wri.org

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Can the World Bank Lead on Climate Change?

Jon Talbot — Wed, 11 Jun 2008 17:20:07 -0400

June 11, 2008 - As the finance ministers of the G8 countries begin their annual meetings this Friday in Osaka, Japan, they are expected to endorse two multibillion dollar funds to reduce emissions of greenhouse gases and build resilience to the impacts of climate change.

But an analysis released today finds that the intended administrator of those funds, the World Bank, has not yet met existing G8 expectations to integrate climate change considerations into its lending and operations.

“The World Bank needs to demonstrate leadership to steer investment towards low carbon, environmentally sustainable development choices,” said Jonathan Lash, president of the World Resources Institute, which produced the analysis. “This will be difficult to achieve while simultaneously investing in many ‘business as usual’ projects, such as coal-fired power.”

At the Gleneagles Summit in 2005, the G8 tasked the World Bank with mobilizing an “investment framework for clean energy.” The WRI analysis finds that during the past three years, less than 30 percent of the World Bank’s lending to the energy sector has integrated climate considerations into project decision-making. As late as 2007, more than 50 percent of the World Bank’s $1.8 billion energy-sector portfolio did not include climate change considerations at all.

Japan, the United States, and the United Kingdom have pledged more than US$5.5 billion to a World Bank-administered Clean Technology Fund that will be formally launched at next month’s G8 Heads of State Summit in Hokkaido, Japan.

“The World Bank is the key to leveraging these funds for the greatest impact on investment choices worldwide to address climate change,” Lash added.

Jacob Werksman, director of WRI’s Institutions and Governance Program, said, “If the World Bank and other multilateral development banks are to be entrusted with managing the Clean Technology Fund, they must demonstrate that they are consistently helping developing countries integrate climate change into economic development choices. Accounting for the cost of carbon through rigorous analysis of greenhouse gas emissions needs to drive investment choices. Progress along these lines must be made much more rapidly than it has been to date.”

Correcting the World’s Greatest Market Failure: Climate Change and the Multilateral Development Banks - based on a comprehensive review of the energy-sector portfolios and active country strategies of the World Bank Group, the Inter-American Development Bank, and the Asian Development Bank - is available online at www.wri.org/publication/mainstreaming-climate-change-considerations-multilateral-development-banks.

Majority of Senate Now On Record for First Time to Take Action on Climate Change

Paul Mackie — Fri, 06 Jun 2008 14:08:53 -0400

Statement from World Resources Institute President Jonathan Lash on June 6 Senate Vote on the Climate Security Act

“Today, a majority of the Senate sent a message to Americans and the rest of the world that they believe the time is now to confront climate change. Including statements of support from senators unable to cast their votes, 54 senators went on record as believing this is too important an issue to ignore, and this is too important an opportunity for progress to refuse a serious debate.

“These 54 senators rejected scare tactics from opponents of the bill and had the courage to insist that the nation confront energy security, climate security, and the economic opportunities that lie waiting for us in a transformed economy.

“The policies contained in this act will provide the incentives and resources for the American economy to engage our vast reserves of innovation, enterprise and hard work to thrive in tomorrow’s markets and tomorrow’s environment.”

Freedom of Information Not Enough to Hold Governments Accountable on Environment

Paul Mackie — Thu, 05 Jun 2008 09:58:48 -0400

While many national governments have made real progress in honoring their 1992 Rio Earth Summit commitments to better include the public in environmental decisions, a new book released here today in honor of World Environment Day finds that all the countries studied have fallen short in some aspect.

“Access to information is essential, but in order to act on the information they get, people need to be able to participate in a fair and open process,” said Jonathan Lash, president of the World Resources Institute (WRI), which produced the book.

Voice and Choice: Opening the Door to Environmental Democracy is based on reviews of national law and compiles findings from more than 200 case studies in 26 countries. Governments - simply by improving public participation - could have more successfully managed or prevented unhealthy levels of lead in Washington, D.C. drinking water; spills of sulphuric acid and petroleum in Chile; and the disposal of hazardous military waste in Bulgaria, to name just three examples.

The book identifies innovative solutions being tested around the world to improve public participation, including Mexico’s cabinet-level agency to handle freedom of information requests, public environmental education in South Africa, and training of judges in Indonesia.

“Without meaningful public participation and access to justice, freedom of information alone does not enable the public to hold governments accountable for decisions affecting the environment,” said Joseph Foti, associate at WRI and lead author of Voice and Choice.

The authors recommend that governments must take more active steps to involve the public in decision-making. Additional recommendations include building and strengthening programs to help the public demand and use opportunities for public participation. The book is based on the work of The Access Initiative and is available at www.wri.org.

Major Policy Intervention Required to Boost Carbon Capture Potential

Nate Kommers — Wed, 04 Jun 2008 00:00:00 -0400

A World Resources Institute (WRI) analysis of the complex challenges that investors would face when deploying carbon capture and storage (CCS) technologies shows that until government policies support large-scale demonstrations it is unlikely that CCS will be able to fulfill its potential in combating climate change.

Carbon capture and storage, the process whereby carbon dioxide from a coal-fired power plant is injected deep underground to prevent it from entering the atmosphere and contributing to climate change, could play a significant role in reducing greenhouse gas emissions while allowing for the continued use of coal as an energy source. Coal is one of the cheapest fuels for power generation, and its affordability and large domestic reserves make it likely to remain so for some time.

However, using CCS technologies to inject carbon dioxide from coal combustion into underground formations will require solutions to a host of technical, regulatory and financial challenges, according to the analysis.

The analysis shows that if these challenges are to be overcome in a timeframe for CCS to play a meaningful role in the fight against climate change, not only must there be a price on carbon that is high enough to make CCS technologies cost-competitive, but there must also be immediate government intervention in the form of support for large-scale demonstration plants far beyond current efforts.

The full analysis is detailed in the WRI report Capturing King Coal: Deploying Carbon Capture and Storage Systems in the U.S. at Scale, released today.

“Unless we can put a price on carbon and push these new technologies into the market with additional incentives CCS won’t arrive in time,” said Dr. Jonathan Pershing, director of WRI’s climate, energy and pollution program. “We need to deploy the technology as quickly as possible - and that in turn means paying for large scale demonstrations and infrastructure, and creating a regulatory environment that provides public confidence in the safety and environmental integrity of the technology.”

The report points to the need for rapid progress in the technological, regulatory, financial and policy fronts for CCS to become a solution to climate change.

The technological challenges facing CCS are focused around developing several different technologies at differing levels of maturity that will have to operate in concert for the process to work on a large scale.

On the regulatory front, WRI has engaged a diverse set of stakeholders to develop guidelines for CCS. This effort is taking place in the context of rapid changes in the policy arena, as the U.S. EPA has initiated a process to develop regulations governing the underground injection of CO2 for sequestration. The WRI guideline project provides a transparent forum for communication of best practices and regulatory recommendations for carbon capture, CO2 transportation and underground sequestration to a broad array of stakeholders. The expected release of the WRI CCS guidelines is this fall, and today a group of CCS experts convened to discuss key technical issues.

Both the King Coal report and the guideline effort frame key issues around long-term liability for underground sites where carbon dioxide will be stored. Since the gas must stay underground for centuries, there must be clear guidelines for liability from leakage 100 years or more into the future.

Unique financial and investment challenges will also have to be overcome in order to create a CCS infrastructure in the U.S. In addition to the large capital investment that will be required, a more immediate concern is that construction firms, already facing rising costs, may be reluctant to extend performance guarantees to coal plants built with untested technology.

“All of these are intimidating challenges, but if we get some steel in the ground and some demonstration plants running, the investment community will follow,” said Hiranya Fernando, a senior associate at WRI and one of the authors of the report.

$1.5 Million Grant Supports Peterson Institute and WRI on International Trade and Climate Change

Nate Kommers — Thu, 29 May 2008 12:00:00 -0400

The Peterson Institute for International Economics has been awarded a $1.5 million grant by the Doris Duke Charitable Foundation (DDCF) as part of the foundation’s $100 million Climate Change Initiative.This joint project, conducted with the World Resources Institute (WRI), will undertake a comprehensive analysis of the connections between international trade and climate change policies and make recommendations for how these policies can be mutually supportive.

“The foundation is pleased to award this grant to an organization of the Peterson Institute’s intellectual caliber,” said Joan Spero, President of DDCF. “Working together with an environmental leader like the World Resources Institute, the Peterson Institute is well equipped to produce research and recommendations that can help spark creative solutions in the ongoing debate about climate policy, trade policy, and international competitiveness.”

The analysis will begin with an assessment of the degree to which different emissions control programs would affect the costs or impede the competitiveness of particular industries in key countries. From this foundation, the researchers will be able to assess the role that industry-specific and bilateral agreements, as well as multilateral agreements and institutions like the World Trade Organization (WTO), can play in maximizing greenhouse gas reductions while minimizing economic impacts.

“The creation of a global regime to address the crucial problems posed by climate change has the potential to produce the most sweeping changes in the international economic architecture since the construction of the Bretton Woods system at the end of the Second World War,” said C. Fred Bergsten, Director of the Peterson Institute. “It is imperative that cutting edge research proceed as quickly as possible to inform both the national decisions that will be taken on these issues in the United States and elsewhere over the next few years and the international negotiations that will seek to mesh them into a coherent global regime.”

WRI and the Peterson Institute already have collaborated successfully on Leveling the Carbon Playing Field, a new book that focuses on the potential impact of US climate policies on carbon-intensive manufacturing in the United States. This new grant will enable the two organizations to use a similar methodology to generate recommendations or how to design international climate and trade policies, such as the successor treaty to the Kyoto Protocol.

“This research comes just as policymakers are grappling with tough issues on global warming and global trade, both in the US and in the UN Framework Convention on Climate Change,” said WRI President Jonathan Lash. “Creating opportunities for international cooperation, rather than confrontation, has to start
now.”

Over the next two years, the Peterson Institute and WRI will publish their research and recommendations in a series of five studies that will address crucial aspects of the nexus between national greenhouse gas reduction efforts and the global trading system.

Addressing International Carbon Leakage
A Positive Agenda for Climate and Trade
Addressing Trade-Climate Linkages Through Sectoral Agreements
The Role of the WTO in Future Climate Policy
Aligning Free Trade Agreements with Climate Change Goals

“Efforts to address global climate change cannot succeed unless they take into account the realities of global trade and the international competitiveness of energy-intensive industries,” said Andrew Bowman, Director of the Climate Change Initiative at DDCF. “The hope here is to connect the dots between these two important issues and find ways that climate and trade policies can work together, rather than at cross purposes.”

The Peter G. Peterson Institute for International Economics (www.petersoninstitute.org) is a private,nonprofit, and nonpartisan research institution devoted to the study of international economic policy. Since 1981, the Institute has provided timely and objective analysis of, and concrete solutions to, a wide rangeof international economic problems.

Program Launched to Help Companies in India Deal with Global Warming

Paul Mackie — Wed, 28 May 2008 13:14:54 -0400

In the same month that a similar program was launched in Brazil, India kicked off a climate program here today with more than 40 member companies from a wide range of industries, including cement, pharmaceuticals, engineering, and many more.

“The India Greenhouse Gas Inventory Program will allow our companies to consistently and credibly monitor their emissions. We need a standardized protocol that is accepted all over the world to ensure credibility,” said Mr. K P Nyati, Principal Advisor, Confederation of Indian Industry (CII). The India GHG Inventory Program is being implemented by the Sohrabji Godrej Green Business Center (GBC) of CII.

“This new program will help India establish a national model of emissions accounting. You can’t manage what you don’t measure,” said Manish Bapna, executive vice president of the World Resources Institute (WRI).

WRI partnered with CII-GBC and the U.S. Environmental Protection Agency (EPA) in establishing the program, which is modeled after EPA’s Climate Leaders program

“We’re glad to be working with Indian industry on this important initiative,” said Jim Sullivan, director of the U.S. EPA’s Climate Leaders program. “By adopting greenhouse gas management strategies that make business sense, India ‘s industry leaders are demonstrating that a healthy environment and a healthy economy can, in fact, go hand-in-hand.”

India ranks seventh in the world in terms of annual GHG emissions and is responsible for nearly 3.6 percent of world emissions. The country will now have an accounting system, based on international standards and best practices,, that will help identify opportunities to cut emissions, and reduce waste and costs associated with high emissions levels.

“For many businesses, compiling a comprehensive inventory of their GHG emissions is the first key step in developing an effective GHG management and reduction strategy. A GHG inventory will improve the company’s understanding of its GHG emissions profile and thereby its potential GHG liability or exposure in a carbon constrained economy,” noted Mr A K Kaul, Ex-Chairperson, CII Delhi State Council.

As a developing country, India has no GHG reduction obligation under the international climate treaty known as the Kyoto Protocol, and corporate GHG reporting is voluntary. Nonetheless, some companies choose to inventory their emissions in order to identify potential efficiency improvements or meet environmental performance goals.

“The Government of India’s industrial policy aims not only at a sustained growth but also in being internationally competitive…we believe that a low carbon economy is an absolute must for a better future,” said Mr R Muralidhar, Under Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India. “To achieve that, an inclusive approach to environmental issues is a must.”

Much like the new “Brazil GHG Protocol Program,” India ‘s program will be based on the standardized framework of the GHG Protocol, and representatives from member companies will receive training on international best practices in GHG accounting and management. The GHG Protocol was created by WRI and the World Business Council for Sustainable Development ( WBCSD) and is considered the global standard for accounting of GHG emissions by governments, businesses, and other organizations. Sixty-three percent of Fortune 500 companies use the GHG protocol to disclose their emissions, according to a new study by the Corporate Register.

The 45 member companies of the India GHG Inventory Program are: Air Treatment Engg., Apollo Hospitals Enterprises, Ashok Leyland, Bhuhari Holdings, Bosch Limited, Capricon Food Products, Cavinkare, Century Rayon, Control Techniques India, DCW, Elantas Beck India, Elico, ETA Engineering, Godrej & Boyce Mfg Co., Godrej Industries, Grundfos Pumps India, HIRCO, IM GEARS, Infosys Technologies, JBM Group, Khiviraj Tech Park, Kirloskar Oil Engines, Loyal Textile Mills, NICCO Corporation, NICCO Parks & Resorts, NTTF Industries, Praj Industries, Raman Fibrescience, Simpson & Co., T V Sundram Iyengar & Sons, Tata Power, The Tata Iron & Steel Co., The Tinplate Company of India, Thirumalai Chemicals, TTK LIG Ltd, Veena Die Casting & Engineers, Wipro, WS Industries, Birla Corporation, Dalmia Cement (Bharath), Kesoram Cement, Vasavadatta Cement, My Home Industries, Madras Cement, and Century Cement.

Funding for the program is provided by the Asia Pacific Partnership on Clean Development and Climate and the U.S. EPA.

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The World Resources Institute ( www.wri.org ) is an independent, non-partisan and nonprofit organization with a staff of more than 100 scientists, economists, policy experts, business analysts, statistical analysts, mapmakers, and communicators developing and promoting policies that will help protect the Earth and improve people’s lives.

CII-Sohrabji Godrej Green Business Centre is a public-private partnership engaged in energy efficiency, renewable energy, recycling and climate change activities in manufacturing and building sector, to promote “green” concepts leading to higher efficiency, equitable growth and sustainable development.

U.S. EPA’s Climate Leaders program is an industry-government partnership that works with companies to develop comprehensive climate change strategies to reduce their impact on the global environment by completing a corporate-wide inventory of their greenhouse gas emissions based on a quality management system, setting aggressive reduction goals, and annually reporting their progress to EPA.

MEDIA ADVISORY: Book Launch and Panel Discussion - Voice and Choice: Opening the Door to Environmental Democracy

Jon Talbot — Thu, 22 May 2008 20:49:32 -0400

WHAT: In honor of World Environment Day, the World Resources Institute and The Access Initiative will hold a book launch and panel discussion to detail a wealth of new findings on how well national governments around the world are doing in the areas of transparency, public participation, and accountability in decision-making about the environment.

WHEN: Tuesday, June 5, 2008
3:00 p.m. to 5:00 p.m.
(Food and drinks will be served at a reception after the event.)

WHERE: World Resources Institute
10 G Street NE, Suite 800, Washington DC 20002
(Metro: Red Line to Union Station) WHO: Jonathan Lash, president, World Resources Institute
David Hunter, director, Program on International and Comparative Environmental Law at Washington College of Law, American University

Lalanath de Silva, director, The Access Initiative

Joseph Foti, associate, The Access Initiative

Tomás Severino, director, Cultura Ecológica, Mexico City, Mexico

WHY: Sustainable development depends on the ability of the public to know about and participate in decisions about the environment. Efforts in dozens of countries to promote this “access” show a history of uneven progress. The new book, Voice and Choice: Opening the Door to Environmental Democracy, provides new findings about 26 countries on six continents. It also highlights innovations in these countries that have improved public participation, including freedom of information acts and access to courts.

RSVP:
Jonathan Talbot, media officer, +1(202) 729-7828, jtalbot@wri.org
Paul Mackie, director of media relations, +1(202) 729-7684, pmackie@wri.org