While manufacturing is a critical part of the U.S. economy, it’s struggled over the last several years—both financially and environmentally. Overall U.S. manufacturing employment has dropped by more than one-third since 2000. Meanwhile, U.S. industry—of which manufacturing is the largest component—still uses more energy than any other sector and serves as the largest source of U.S. and global greenhouse gas emissions.
The good news is that energy efficiency can help U.S. manufacturing increase profits, protect jobs, and lead the development of a low-carbon economy. The Midwest’s pulp and paper industry is a case in point: New WRI analysis finds that the pulp and paper sector—the third-largest energy user in U.S. manufacturing—could cost-effectively reduce its energy use in the Midwest by 25 percent through use of existing technologies. These improvements could save hundreds of thousands of jobs, lower costs, and help the United States achieve its goal of reducing emissions by 17 percent by 2020. As the White House moves to cut carbon dioxide pollution in America, energy efficiency improvements in Midwest pulp and paper mills are a tangible example of the win-win-win emissions-reduction opportunities in U.S. industry.
In 2010, the U.S. Congress passed, and President Obama ratified, a pioneering law that requires emissions targets and timetables for a U.S. government agency, and the development of a human rights policy for an export credit agency.
The legislation, a first of its kind, was incorporated into the 2010 Appropriations Bill and requires the U.S. Overseas Private Investment Corporation (OPIC) to take action on climate change and to develop - and publish - binding internal environmental and human rights guidelines.
They are also mandated to implement a revised climate change mitigation plan to phase down greenhouse gas (GHG) emissions associated with projects and sub-projects they finance by at least 30% in 10 years and 50% in 15 years over 2008 levels. This marks the first time that a U.S. government agency has set a target and timetable on its emissions reductions. In August 2010, under the leadership of new president Elizabeth Littlefield, OPIC took this mandate one step further, and adopted progressive environmental and human rights guidelines that have set the gold standard for financial institutions worldwide.
WRI played a key role in the outcome, engaging with Congress on the issue over three years, along with a wider coalition of NGOs. WRI served as a key resource for legislators in the U.S. Congress who drafted the legislation. The legal requirement builds on WRI’s earlier work to get OPIC to adopt a voluntary greenhouse gas initiative in 2007 to reduce its emissions by 20% over 10 years as well as a February 2010 landmark settlement of a 2002 lawsuit filed against OPIC by Friends of the Earth, Greenpeace and several U.S. cities affected by climate change, to which they alleged OPIC’s investments had made a substantial contribution.
The settlement required OPIC to establish a goal of reducing its emissions by 20% over the next 10 years, to conduct full environmental impact assessments for projects that emit significant amounts of carbon dioxide (CO2) and to publicly report its emissions from these projects annually. In August 2010, OPIC released their environmental and human rights guidelines, which strongly reflect the inputs and recommendations of WRI.
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:
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.
Legislation by national governments to curb greenhouse gas (GHG) emissions is essential to achieving a low-carbon economy and improved public health worldwide.
In 2012, Mexico took the historic step of enacting a comprehensive climate change law. The groundbreaking legislation commits Mexico to cut its GHG emissions by half by 2050 and prominently features sustainable transport initiatives.
EMBARQ Mexico played a major role in shaping the law, proposing measures for mass transit, fuel efficiency, pedestrian and cycling infrastructure, and restrictions on high-polluting vehicles—all of which the government included.
Setting a Precedent for Global Climate Action
When a government signals its seriousness about combating climate change by passing legislation, it promotes the country’s transition towards a competitive, sustainable, and low-carbon economy. It provides a precedent for other countries to follow suit, and gives a boost to the U.N. international climate negotiations.
Mexico’s groundbreaking law makes it one of the first countries to adopt ambitious and comprehensive legislation on climate change. Enacted by President Felipe Calderón, the General Law of Climate Change seeks to guarantee citizens’ right to a healthy environment. The law will unlock substantial federal funds for low-carbon development and will prompt new regulations to mitigate GHG emissions.
In a major departure from the international climate negotiations, the bill’s measures for reaching the 2050 emissions goal include transforming transportation systems and infrastructure. Mexico’s president worked across party lines at the federal, state, and city levels to win agreement on the policies needed to meet the bill’s ambitious targets.
Making Change Happen: WRI’s Role
EMBARQ Mexico was designated as the transport expert to review the draft bill when it went before Mexico’s Senate and make specific policy recommendations.
We proposed key sustainable transport measures that were included in the final law, including the development of sustainable mass transport systems and improved infrastructure for pedestrians and bicyclists. The bill also includes our recommendations to develop new fuel-efficiency standards for light and heavy-duty vehicles, as well as regulations restricting imports of high-polluting vehicles.
EMBARQ’s prominent role in the legislation stemmed from our work in helping Mexican cities to introduce sustainable transport systems, as well as our national policy research demonstrating the importance of sustainable transport as a climate-mitigation strategy.
A growing number of countries and companies now measure and manage their emissions through greenhouse gas (GHG) inventories. Cities, however, lack a common framework for tracking their own emissions—until now.
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.