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United States Carbon: Venture-Backed Companies Put Social Impact on Par with Financial Returns

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Governor Markell, Entrepreneurs and DE State Legislators celebrate the first DE benefit corporations

Today, Delaware Governor Jack Markell and Secretary of State Jeffrey Bullock welcomed a record 17 companies to register as Delaware benefit corporations on the statute’s first effective date.

Registering companies include popular home goods brand Method Products, fastest-growing organic baby food brand Plum Organics, innovative paper company New Leaf Paper, leading fair trade food business Alter Eco and Farmigo, the world’s first online personal delivery farmer’s market. Venture capital investors, corporate investors and parent companies of these businesses include San Francisco Equity Partners and European eco-leader Ecover (Method), American icon Campbell Soup Company (Plum), Benchmark Capital and RSF Social Finance (Farmigo), Pacific Community Investors (New Leaf Paper) and Good Capital (Alter Eco).

“Benefit corporations meet a market need and a societal need,” said Governor Jack Markell. “They have the potential to create high quality jobs and improve the quality of life in our communities.”

“B Corp re-imagines corporate governance in a way that drives value creation for all and creates lasting companies,” said Michael Eisenberg of Benchmark Capital.

Delaware is the 19th state (plus the District of Columbia) to enact benefit corporation legislation, but as legal home of most venture-backed businesses, the majority of publicly-traded companies, and nearly two-thirds of the Fortune 500, it is the most important state for businesses that seek access to venture capital, private equity and public capital markets. Current Delaware law requires corporations to prioritize the financial interests of shareholders over the interests of workers, communities and the environment. Benefit corporations enjoy legal protection to create value for society, not just for shareholders, while meeting higher standards of accountability and transparency.

“Part of Method’s mission is to show that business can be a force for social and environmental good. Delaware benefit corporation law enables responsible businesses like Method to practice a more enlightened form of corporate governance that includes not only financial objectives, but social and environmental objectives,” said Adam Lowry, Co-Founder and Chief Greenskeeper of Method Products.

“Adopting this legislation is a natural extension of how we do business at Plum,” said Neil Grimmer Co-founder & President of Plum Organics. “We are committed to providing little ones with the very best food from the very first bite, and a publicly stated benefit recommits us to that core value. We are honored to be among the first to reincorporate as a benefit corporation, and hope today will set the stage for many like-minded companies to join us.”

In recognition of what members of the Delaware Bar have called a “seismic shift in corporate law,” more than 600 business leaders from the community of B Corps have signed an Open Letter inviting their colleagues to join them in redefining success in business. Signatories include well-known businesses like Patagonia and Ben & Jerry’s and high growth businesses like online marketplace Etsy and eyewear company Warby Parker; the Open Letter to Business Leaders can be read at www.bcorporation.net/open-letter-to-business-leaders.

Benefit corporations are a new kind of corporation legally required to: 1) have a corporate purpose to create a material positive impact on society and the environment; 2) expand fiduciary duty to require consideration of the interests of workers, community and the environment; and 3) publicly report annually on its overall social and environmental performance using a comprehensive, credible, independent and transparent third party standard. Delaware’s statute does not require use of a third party standard and only requires reporting to shareholders, not to the general public.

Four other companies, SustainAbility, Honest Company, GOOD Inc. and Performance Management Institute, have also committed to registering as benefit corporations in the coming year.

“With the passage of Delaware Benefit Corporation legislation, the path is now clear to scale business as a force for good,” said Andrew Kassoy, B Lab Co Founder. “It’s great to see venture capital and corporate investors taking advantage of this new tool to scale mission driven businesses on the very first day.”

To learn more about United States Carbon and our energy reduction technology that will help you become greener, cleaner, and more socially responsible please contact us at (855) 393-7555 or visit our website: www.unitedstatescarbon.com

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United States Carbon: Benefits of Corporate Social Responsibility

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benefits-of-corporate-social-responsibility

 

No longer is the term ‘Corporate Social Responsibility’ a novel idea amongst businesses. A 2011 sustainability study by MIT showed that sustainability, in the US at least, now plays a permanent part in 70% of corporate agendas.

Organisations such as Unilever haven’t simply been championing sustainable business as a form of corporate philanthropy. Since implementing their Sustainable Living Plan, they have increased growth and profits. Quite simply, doing good is good for business.

How have Unilever achieved this growth? By being a responsible, sustainable business, they have saved money (energy, packaging etc.), won over consumers, fostered innovation and have managed to inspire and engage their people.

Benefits of corporate social responsibility

The Unilever success story is well publicised, but it can be hard to identify with a business of such size. However, the great news is that even the smallest of organisations benefit when putting Corporate Social Responsibility (CSR) at the heart of their business.

Whilst profit may be the end goal for any business, responsible businesses have managed to attract more investors, reduced their risks and addressed stakeholder concerns. With there barely being a day in the news where a business hasn’t made an embarrassing error of judgement, more interest is being show in business demonstrating Corporate Social Responsibility (CSR).

The benefits from adopting CSR can be less obvious than say, helping the environment. For example, a survey from Net Impact found that 53% of workers said that “a job where I can make an impact” was important to their happiness. Interestingly, 35% would take a pay cut to work for a company committed to CSR.

Examples of corporate social responsibility

CSR isn’t about giving money to charity, or just asking people not to print emails for the sake of Mother Earth! First and foremost, businesses exist to make profit, and this isn’t meant to change as a goal. The reality is that no organisation operates in isolation; there is interaction with employees, customers, suppliers and stakeholders. CSR is about managing these relationships to produce an overall positive impact on society, whilst making money.

So how do you put CSR into action? Below are a few examples of what businesses around the World are doing.

Making ‘green’ fashionable: The Body Shop

The Body Shop forged a reputation as a responsible business long before it became fashionable. They were one of the first companies to publish a full report on their CSR initiatives thanks to founder Anita Roddick’s passionate beliefs of environmental protection, animal rights, community trade and human rights. The company has gone so far as to start The Body Shop Foundation, which supports fellow pioneers who would normally struggle to get funding.

Over 20 years ago the company set up a fair trade programme, well before the term ‘Fair Trade’ started to become popular on supermarket shelves. Of course, The Body Shop is famous for its anti-animal testing stance. Whilst this makes testing their products more difficult, especially in markets such as the USA and Japan, their position has created a loyal customer base. The results? From opening her first store in 1976, 30 years later Annit Roddick’s empire was taken over by L’Oreal for £652m, where it has continued to make annual profits of over £40m.

Putting the fun into CSR: Walt Disney

Moving beyond making cartoons, today the Walt Disney Company additionally owns the ESPN and ABC networks, holiday resorts and publishing businesses to name a few. The result is a lot of social and environmental impact, as well as the ability to influence a huge amount of people.

Importantly, Disney recognised that you can’t entertain a family on the one hand and then disregard the world and circumstances in which they live. Acting responsibly gives the company credibility and authenticity. Accordingly, they have set themselves strict environmental targets and disclose their figures in the Global Reporting Initiative which provides a comprehensive set of indicators covering the economic, environmental and ethical impacts of a company’s performance

Setting ambitious financial targets together with environmental performance targets may sound like an oxymoron, but Disney has managed to do this with initiatives such as running Disneyland trains on biodiesel made with cooking oil from the resort’s hotels. They also created the ‘Green standard’ to engage and motivate employees in reducing their environmental impact when working, having meetings, travelling and eating lunch. With more than 60,000 staff, the results are enormous when everyone is pulling in the same direction.

A clear example of financially benefiting from reducing environmental impact is made with this simply statistic: a 10% reduction in the corporation’s electricity use is enough to power the annual consumption of 3 of their theme parks. Whilst their CSR efforts may have taken a great deal of organisation, dedication and investment, 2012 was a record year for Disney’s profits.

Haagen-Dazs and honeybees

This might sound odd at first, but honeybees are an important part of the global food chain as they pollinate one-third of all the food we eat! With numbers lower than ever, this is bad news for companies such as Haagen-Dazs and their all-natural ice creams. To raise awareness, they created a website, started a social media campaign and donated a portion of proceedings to research.

As you can see, a campaign like works fantastically from a number of different angles. Not only is it helping society as a whole, in keeping with the company’s CSR goals, it helps to show a human side to consumers, which can’t hurt sales. In fact, research shows consumers are more likely to pay a premium for a product linked to a charity donation.

How can CSR translate to a smaller business? The issues are the same, just on a smaller scale. The key is to start by conducting a review of what impacts your business has. This could be from environmental issues (energy use, waste etc.), to how your employees are treated, your supply chain and the local community. Below is a look at some examples a small business would recognise, and could act on.

The environment

Even the smallest of office-based businesses can make big changes when it comes to the environment. When you consider an average office worker can use up to 11 sheets of paper a day, are you really reusing and recycling as much as you could?

A common lapse is forgetting to turn off your PC’s monitor come home time. Left on overnight, that is the equivalent of printing 800 A4 pages! Multiply that by the varying IT equipment in your office and you’re looking at a lot of unnecessary energy use.

The above examples ideally illustrate how thinking sustainability isn’t just good for the environment; it saves overheads and helps the bottom-line too.

Staff welfare

For a smaller business, extravagances can be hard to justify. However, happier staff doesn’t simply mean bonuses and pay rises.

What employees value is participation: do they get a fair say? Keeping staff updated on the business and inviting opinions keeps them motivated and loyal. Investing in them with internal and external training helps them do a better job and helps in retraining them, too. Would you rather invest less and have a poor performing, unmotivated team with a high attrition rate instead?

Community

You can incorporate your staff welfare plans with your aims to boost community relationships too. If you’d like to support a local charity, why not let your staff vote for their favourite? It’s now common for businesses to allocate charity days where staff get hands-on with their chosen charity, the effects going far further than monetary donation.

In uncertain financial times, employment rates are always an issue. Could your business offer part-time work or training to those in long-term employment, or students looking for their first work experience?

Finally, there’s the supply chain. Do you have a policy to purchase locally? With the internet opening up the world, it’s surprising how far away some suppliers are. Not only could sourcing locally boost the local economy, you’re helping the environment by avoiding unnecessary travel and consequent emissions.

It’s surprising when you break down your organisation’s activities to see how many people are affected by it. It’s also clear that CSR isn’t a cynical marketing ploy for big businesses; there are tangible benefits to be had by all. The key is not to treat CSR as an ‘initiative’, but to simply view it as the way you do business. Applying CSR is just redefining aspects of what you’re already doing; it needn’t be exotic or costly. Instead, start small and gain momentum.

To learn more about United States Carbon and our energy reduction technology that will help you become greener, cleaner, and more socially responsible please contact us at (855) 393-7555 or visit our website: www.unitedstatescarbon.com

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United States Carbon: Smart Power Opens Minds, Opens Markets

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“Why give money to people that don’t like us?”

“We’re broke at home, so how can we afford to send money to people abroad?”

These are the two most oft-repeated objections heard by many US senators and congressmen to spending money on international affairs programs. So why would the US Chamber of Commerce and the US Global Leadership Coalition (USGLC), a coalition of over four hundred businesses and non-governmental organizations along with over one hundred thirty retired generals and admirals, call on Congress this week to do exactly that?

It’s just smart business.

A senior sales executive at a major US company recently told me, “We’re the best in the world at designing the next generation of products in [our industry]. But we’re terrible at figuring out the next generation market for those products.” For many American companies, from aviation to pharmaceuticals, the lead-time for product development can take decades. According to this executive, “As a company, we need to be in these developing markets now…investing through our corporate responsibility and citizenship programs,” she said. “That’s why we need partnerships with NGOs [non-governmental organizations] and folks like USAID…they’ve got intimate knowledge, on the ground in developing nations and can help us build trust in those countries now so we don’t show up late to the party after the Chinese beat us to the punch.”

Programs funded by the International Affairs Budget create enabling environments for American businesses to succeed in overseas markets today.   

Unlike many of our counterparts in Europe and Asia, American businesses don’t always think about export markets.

That has to change. “Outside our borders are markets that represent 80 percent of the world’s purchasing power, 92 percent of its economic growth, and 95 percent of its consumers,” testified John Murphy, Vice President of International Affairs for the US Chamber of Commerce, before the Senate Foreign Relations Committee Wednesday.

As these data indicate, the American economy simply can’t afford to ignore export markets any more. In fact, according to Murphy, many American businesses already grasp this reality and take advantage of it, “One in three manufacturing jobs depends on exports, and one in three acres on American farms is planted for hungry consumers overseas. Nearly 300,000 small and medium-sized businesses export, accounting for more than one-third of all merchandise exports.”

The most forward-looking companies increasingly use their own “smart power” partnerships with international development agencies and NGOs as a way of opening markets. While a country uses smart power when it intelligently combines hard military power with soft – diplomatic, development, economic – power, companies combine their hard power – revenues, contracts, supply chains – with their soft power – brand, corporate citizenship, public-private partnership, philanthropy. A senior corporate responsibility officer at a major US corporation recently described the use of, “CSR and philanthropy in the ‘pre-competitive’ stage,” as a way of investing in new markets before his products and those of his competitors have reached developing countries in order to build both trust and purchasing capacity. These smart power partnerships are another way the international affairs budget pays dividends for American companies.

In his testimony before the Senate Foreign Relations Committee, Bill Lane, head of Caterpillar‘s Washington Office and Co-President of the USGLC, pointed out that many developing countries have limited ability buy American products and services today. “In these countries the road to development – and the investment, commerce, and trade that follow –may begin (literally) with a road,” testified Lane, “referring to the basic infrastructure that must be improved and, in some cases, created from scratch using machinery and expertise often supplied by companies like Caterpillar.”

Lane said businesses need, “conditions where there are stable governments, transparency, predictability, adequate financial infrastructure, free market economic policies that allow for competition, and rule of law.” Lane voiced the collective conviction of USGLC’s four hundred business and NGO members that, “…programs funded in the International Affairs Budget are vitally important for America’s economic future, national security, and global influence.”

Both Lane and Murphy urged America not “unilaterally disarm,” in the face of growing competition from Chinese and other potential competitors. In their view, the smart power combinations of American businesses, NGOs, and government agencies can level the playing field abroad and expand the economy at home. For firms like Caterpillar, the math is simple, according to Lane, “The more trucks and tractors we sell overseas, the more jobs… in places like Peoria where those vehicles are manufactured.”

Modest investments – the international affairs budget represents just over one percent of the federal budget – can pay big rewards for shareholders, America, and the world. After all, as Bill Gates has said, “Investing in the world’s poorest people is the smartest way our government spends money.”

To learn more about United States Carbon and our energy reduction technology that will help you become greener, cleaner, and more socially responsible please contact us at (855) 393-7555 or visit our website: www.unitedstatescarbon.com

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United States Carbon: Climate study predicts a watery future for New York, Boston and Miami

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miami

More than 1,700 American cities and towns – including Boston, New York, and Miami – are at greater risk from rising sea levels than previously feared, a new study has found.

By 2100, the future of at least part of these 1,700 locations will be “locked in” by greenhouse gas emissions built up in the atmosphere, the analysis published in the Proceedings of the National Academy of Sciences on Monday found.

The survey does not specify a date by which these cities, or parts of them, would actually fall under water. Instead, it specifies a “locked-in” date, by which time a future under water would be certain – a point of no return.

Because of the inertia built into the climate system, even if all carbon emissions stopped immediately, it would take some time for the related global temperature rises to ease off. That means the fate of some cities is already sealed, the study says.

“Even if we could just stop global emissions tomorrow on a dime, Fort Lauderdale, Miami Gardens, Hoboken, New Jersey will be under sea level,” said Benjamin Strauss, a researcher at Climate Central, and author of the paper. Dramatic cuts in emissions – much greater than Barack Obama and other world leaders have so far agreed – could save nearly 1,000 of those towns, by averting the sea-level rise, the study found.

“Hundreds of American cities are already locked into watery futures and we are growing that group very rapidly,” Strauss said. “We are locking in hundreds more as we continue to emit carbon into the atmosphere.”

A recent study, also published in PNAS by the climate scientist Anders Levermann found each 1 degree Celsius rise in atmospheric warming would lead eventually to 2.3 meters of sea-level rise. The latest study takes those figures, and factors in the current rate of carbon emissions, as well as the best estimate of global temperature sensitivity to pollution.

For the study, a location was deemed “under threat” if 25 percent of its current population lives below the locked-in future high-tide level. Some 1,700 places are at risk in this definition. Even if bar is set higher, at 50 percent of the current population, 1,400 places would be under threat by 2100.

The list of threatened communities spans Sacramento, Calif. – which lies far from the sea but would be vulnerable to flooding in the San Joaquin delta – and Norfolk, Va. The latter town is home of America’s largest Navy base, whose miles of waterfront installations would be at risk of being locked in to future sea level rises by the 2040s. The Pentagon has already begun actively planning for a future under climate change, including relocating bases.

About half the population of Cambridge, Mass., across the Charles River from Boston and home to Harvard and MIT, could be locked in to a future below sea level by the early 2060s, the study found. Several coastal cities in Texas were also vulnerable.

But the region at highest risk was Florida, which has dozens of towns that will be locked by century’s end. The date of no return for much of Miami would be 2041, the study found. Half of Palm Beach with its millionaires’ estates along the sea front would be beyond saving by the 2060s. The point of no return for other cities such as Fort Lauderdale would come before that.

“Pretty much everywhere it seems you are going to be under water unless you build a massive system of dykes and levees,” Strauss said.

To learn more about United States Carbon and our energy reduction technology that will help you become greener, cleaner, and more socially responsible please contact us at (855) 393-7555 or visit our website: www.unitedstatescarbon.com

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United States Carbon: A Republican Case for Climate Action

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EACH of us took turns over the past 43 years running the Environmental Protection Agency. We served Republican presidents, but we have a message that transcends political affiliation: the United States must move now on substantive steps to curb climate change, at home and internationally.

There is no longer any credible scientific debate about the basic facts: our world continues to warm, with the last decade the hottest in modern records, and the deep ocean warming faster than the earth’s atmosphere. Sea level is rising. Arctic Sea ice is melting years faster than projected.

The costs of inaction are undeniable. The lines of scientific evidence grow only stronger and more numerous. And the window of time remaining to act is growing smaller: delay could mean that warming becomes “locked in.”

A market-based approach, like a carbon tax, would be the best path to reducing greenhouse-gas emissions, but that is unachievable in the current political gridlock in Washington. Dealing with this political reality, President Obama’s June climate action plan lays out achievable actions that would deliver real progress. He will use his executive powers to require reductions in the amount of carbon dioxide emitted by the nation’s power plants and spur increased investment in clean energy technology, which is inarguably the path we must follow to ensure a strong economy along with a livable climate.

The president also plans to use his regulatory power to limit the powerful warming chemicals known as hydrofluorocarbons and encourage the United States to join with other nations to amend the Montreal Protocol to phase out these chemicals. The landmark international treaty, which took effect in 1989, already has been hugely successful in solving the ozone problem.

Rather than argue against his proposals, our leaders in Congress should endorse them and start the overdue debate about what bigger steps are needed and how to achieve them — domestically and internationally.

As administrators of the E.P.A under Presidents Richard M. Nixon, Ronald Reagan, George Bush and George W. Bush, we held fast to common-sense conservative principles — protecting the health of the American people, working with the best technology available and trusting in the innovation of American business and in the market to find the best solutions for the least cost.

That approach helped us tackle major environmental challenges to our nation and the world: the pollution of our rivers, dramatized when the Cuyahoga River in Cleveland caught fire in 1969; the hole in the ozone layer; and the devastation wrought by acid rain.

The solutions we supported worked, although more must be done. Our rivers no longer burn, and their health continues to improve. The United States led the world when nations came together to phase out ozone-depleting chemicals. Acid rain diminishes each year, thanks to a pioneering, market-based emissions-trading system adopted under the first President Bush in 1990. And despite critics’ warnings, our economy has continued to grow.

Climate change puts all our progress and our successes at risk. If we could articulate one framework for successful governance, perhaps it should be this: When confronted by a problem, deal with it. Look at the facts, cut through the extraneous, devise a workable solution and get it done.

We can have both a strong economy and a livable climate. All parties know that we need both. The rest of the discussion is either detail, which we can resolve, or purposeful delay, which we should not tolerate.

Mr. Obama’s plan is just a start. More will be required. But we must continue efforts to reduce the climate-altering pollutants that threaten our planet. The only uncertainty about our warming world is how bad the changes will get, and how soon. What is most clear is that there is no time to waste.

To learn more about United States Carbon and our energy reduction technology that will help you become greener, cleaner, and more socially responsible please contact us at (855) 393-7555 or visit our website: www.unitedstatescarbon.com

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United States Carbon Mission Statement

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All great advancements in the human experience has changed the lives of the world in positive ways. The ability to create fire for the use of warmth changed countless lives for millenniums. The invention of the wheel has gave man the ability of transportation. The advancements in construction techniques has given man superior shelter capabilities giving us the ability to build cities. These early advancements were simple in relations to the technological wonders modern populations enjoy today. Now, technological advancements, the mega-corpo- rations and the global phenomenon of consumer based societies exist the world over. Advancements that generations of only 50 years ago had no idea, no dream, no comprehension that theses modern wonders would ever exist.

Mankind’s early advancements did not injure the environment. TIMES HAVE CHANGED DRAMATICALLY NOW. We must now take responsibility of the damage we have caused with our insatiable need of consumerism, that will undeniably further affect our natural environment in a negative way. We can no longer hide our head in the sand, thinking the problem will go away. We must acknowledging a problem exists The writing is clearly on the wall. United States Carbon was created with this thought in mind, it is time to take responsibility. We at United States Carbon have accepted the challenge to reverse the negative impact of using more and more natural energy in the form of electricity, water, natural gas, oil and waste. The status quo is no longer good enough. We have assembled a group of successful and talented business executives, from various industries, that have made it their goal to change this negative trend. We can not continue to go down the same irresponsible path anymore. Our goal is to help corporations develop an energy reduction plan (ERP), which will not only have a positive effect on the environment , but on corporate profits as well. United States Carbon…Benefitting People, Planet and Profits.

To learn more about United States Carbon and our energy reduction technology that will help you become greener, cleaner, and more socially responsible please contact us at (855) 393-7555 or visit our website: www.unitedstatescarbon.com

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United States Carbon: No More Free-Pass for Carbon Pollution

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For more than 40 years, the Clean Air Act has proved itself an effective, efficient and flexible tool that has safeguarded public health while fostering economic growth and innovation.

My colleagues and I at the Natural Resources Defense Council (NRDC) released a new analysis today that finds curbing carbon pollution from power plants using the Clean Air Act would have similarly positive results.

In the analysis — “Less Carbon, More Jobs, Lower Bills” — we found that NRDC’s proposal to cut carbon pollution would create new jobs nationally and lower the average American’s monthly electric bill. This analysis is based on a proposal detailed in our December 2012 report “Closing the Power Plant Carbon Pollution Loophole: Smart Ways the Clean Air Act Can Clean Up America’s Biggest Climate Polluters.”

Specifically, we found that our proposed carbon standards would, in 2020, increase national employment by a net total of 210,000 jobs, lower average residential electricity bills by $0.90 per month and have essentially no overall impact on the nation’s GDP.

Total net jobs added by state (select U.S. states) in 2020 from carbon standard
Total net jobs added by state (select U.S. states) in 2020 from carbon standard.
Credit: NRDC.

The analysis

In December 2012, NRDC shared its proposalfor how the EPA could set carbon standards for power plants that would achieve big reductions at far lower cost than conventional wisdom would have suggested. At the same time, these actions would create vast benefits for the American people, including a surge of investment in energy efficiency. The plan would give EPA the flexibility it has under the Clean Air Act to set carbon reduction goals based in part on states’ current electric generation mixes. It would also allow power companies to draw from a wide range of options to meet emissions reduction targets.

With that kind of practical, flexible approach, we showed that EPA could reduce carbon emissions by 26 percent by 2020 (relative to the peak levels in 2005), while at the same time lowering electricity prices. The price tag? About $4 billion in 2020. But the benefits — in saved lives, reduced illnesses and avoided environmental damage — would be worth $25 billion to $60 billion, or six to 15 times greater than those costs.

That report outlined the big picture. Today, we are releasing a companion analysis that digs into the details and examines how our proposal would affect jobs, GDP and electricity bills for average Americans. This analysis also examines how our proposal would look in several states around the country.

Nationally, we see a total net gain of 210,000 jobs in 2020. Florida, Illinois, Michigan, Montana, New Hampshire, North Carolina, Ohio, Oregon, Pennsylvania and Virginia jobs would increase and electric bills would decrease. Colorado, Iowa and Minnesota would see job gains, and Maine residents would save on their electric bills.

Energy efficiency upgrades are the primary driver of job gains in the analysis, responsible for 236,000 additional direct jobs in 2020. Shifts in other sectors (including not just power plants, but also industries that supply inputs to the production of these plants) would reduce the net increase to 210,000; some job gains are also offset because households would be spending money on energy efficiency measures instead of other economy-wide goods and services.

Energy bill savings occur even though the efficiency programs add costs to electricity bills. This is because these charges are still lower than the cost of electricity required without such efficiency changes. While electricity rates (cents per kilowatt-hour) could go up modestly in some cases, electricity bills (rate multiplied by usage) go down, on average, because energy efficiency improvements reduce overall electricity consumption.

Carbon Standard Bills changes
Changes in net job years and utility bills in the United States and in selected states from carbon standard in 2020 (policy case relative to business-as-usual).
Credit: NRDC.

Conservative estimates

Our estimates are conservative.

In the report, changes in utility bills capture savings from energy efficiency only for the year 2020, yet energy efficiency upgrades installed up to that point will continue to have benefits for consumers for many years beyond. The bill savings we estimated reflect up-front charges on electricity bills for energy-efficiency programs and investments in cleaner generation, all of which occur in 2020, minus savings gained from avoiding some energy generation in 2020 alone).

Additionally, the analysis did not include two positive impacts our proposal would have on GDP; due to modeling limitations, we had to leave these effects out. First, we did not calculate productivity improvements to the economy that would result from the $25 billion to $60 billion in health and environmental benefits. These improvements could be significant: a series of studies led by Dale Jorgenson at Harvard University concluded that the healthier workforce resulting from the Clean Air Act increased GDP by as much as 1.5 percent by 2010. Similar to other environmental damages , climate change disrupts worker productivity because of work days lost to extreme weather (e.g. from damages to homes, businesses, and transportation and other infrastructure) and climate-related illnesses (e.g. exacerbated respiratory illnesses such as asthma and bronchitis, and emergency room visits during heat-waves for various health impacts). Extreme heat also directly lowers the productivity of outdoor workers.

Second, our proposed carbon standard reduces wholesale electricity prices in the regions we studied in the eastern part of the country due to reduced electricity demand and the form of the output-based standard (the regulatory limit on power-plant outputs). However, we did not estimate the positive effect this price drop would have on businesses and economy-wide production.

Details aside, though, the big picture is clear. Climate change is fueling extreme weather, heat, drought, forest fires, asthma and many other effects that are harming our children’s health and their future. Yet, one of the largest sources of the dangerous heat-trapping gases driving climate change, our nation’s power plants, emit with no carbon limits whatsoever. They areresponsible for almost 40 percent of the carbon dioxide pollution in the United States.

President Obama has laid out a robust plan for tackling climate change, noting that we have an obligation to protect future generations from its effects.

“Today, for the sake of our children, and the health and safety of all Americans, I’m directing the Environmental Protection Agency to put an end to the limitless dumping of carbon pollution from our power plants, and complete new pollution standards for both new and existing power plants,” he announced in presenting his climate plan on June 25, 2013.

The centerpiece of that plan is the task of cleaning up dangerous carbon pollution from power plants. These plants are our biggest source of carbon pollution, and while they must observe strict limits for arsenic, mercury, lead and other emissions, they face no limits for their carbon dioxide pollution.

As President Obama said, “That’s not right, that’s not safe, and it needs to stop.”

So the president is outlining a common-sense step, using a common-sense tool: the Clean Air Act. Just as we used this act to set limits for arsenic, mercury, lead and other dangerous pollution coming from power plants, we can set limits to efficiently cut the carbon pollution these plants emit.

Our two analyses demonstrate that NRDC’s proposal for reducing carbon pollution from power plants by 26 percent in 2020 will add over 200,000 jobs to the U.S. economy, save Americans money on their electric bills and avoid up to $60 billion in health impacts and other climate-related costs.

When we consider that climate change is already happening in the United States, already affecting communities all across the nation, we think that having a path forward to less carbon, more jobs and lower bills is the right path to take.

To learn more about United States Carbon and our energy reduction technology that will help you become greener, cleaner, and more socially responsible please contact us at (855) 393-7555 or visit our website: www.unitedstatescarbon.com

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United States Carbon: Boulder City Council Wants 80 Percent Greenhouse Gas Reduction By 2050

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Boulder should pursue an aggressive goal of reducing its greenhouse gas emissions 80 percent by 2050, and it can do that without extreme austerity if it can add a lot of renewable energy in the next decade through a municipal utility, City Council members said Tuesday night.

At a study session, the City Council took up the question of what the city’s new climate goal should be, now that the Kyoto Protocol is widely viewed as inadequate to slow climate change: carbon neutrality or 80 percent reductions by 2050.

Many climate scientists believe at least 80 percent reductions are necessary to mitigate the worst effects of global warming.

Councilwoman Lisa Morzel supported the more ambitious goal of achieving complete carbon neutrality and pointed to the example of some European countries that have made significant strides in adding renewables and changing energy use.

City Council members did not take a vote Tuesday because they were in a study session, but a majority said they supported the 80 percent goal as more feasible and better defined.

Councilman Ken Wilson said to achieve complete carbon neutrality, the city would need to account for the goods residents buy, the food they eat, their airplane travel and every other product and service they use.

Without changing the energy supply, achieving an 80 percent drop in greenhouse gas emissions by 2050 would require Boulder residents to cut their electricity use a quarter by 2020 and in half by 2030. They would have to reduce their travel by car from an average of 20 miles a day in 2013 to less than four miles in 2050.

But Senior Environmental Planner Brett KenCairn said the future could be one of energy abundance and economic prosperity if Boulder adds significant renewable energy and positions itself as a leader in emerging technologies related to energy conservation and clean energy.

“This isn’t just the right thing to do morally and ethically,” he said. “It’s actually the most powerful economic engine we could engage our community in to position ourselves for the future. The path to austerity is if we stay tied to carbon energy. The future is very bright with renewable energy.”

For example, with cleaner electricity, people could drive electric cars without adding to the city’s emissions.

Boulder Mayor Matt Appelbaum said more important than the city’s stated goal is the rate at which it makes progress. With a municipal utility, the city could get half of its electricity from renewable sources within a few years.

But Councilman George Karakehian said the city may end up buying power from Xcel Energy for several years even if it forms its own utility.

Councilwoman Suzy Ageton said the city should be careful not to make commitments about things that are out of the city’s control.

Environmental planners are working on five- and 10-year targets to keep the city on track to meet the new climate goal, which is expected to be formally adopted in early 2014, as well as new tools to help them measure their progress.

The city may eventually adopt new commercial energy-efficiency mandates, but planners say they first need better ways to track energy use in more complicated commercial buildings that may have multiple tenants or a wide variety of business types.

Boulder is also working with other cities, along the Front Range and in the Pacific Northwest, to share ideas and experiences working to reduce emissions.

One idea the city is considering — borrowed from Portland — is the idea of “eco districts,” neighborhood organizations that would work on efforts to reduce emissions that matched local priorities, whether that was improving pedestrian safety so people can walk more or contracting collectively for solar panels.

The effort will be tied into other city initiatives, from the transportation master plan to neighborhood design to building codes.

To learn more about United States Carbon and our energy reduction technology that will help you become greener, cleaner, and more socially responsible please contact us at (855) 393-7555 or visit our website: www.unitedstatescarbon.com

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United States Carbon: CSI reports encouraging carbon reduction data

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The World Business Council for Sustainable Development (WBCSD)’s Cement Sustainability Initiative (CSI) has published the latest update to the ‘Getting the Numbers Right’ database, which shows significant CO2 emissions reductions and improved efficiency.

As the cement industry’s global database of CO2 emissions and performance, the latest ‘Getting the Numbers Right’ (GNR) data for 2011 shows that the industry has reduced its specific net CO2 emissions per tonne of cementitious product by 17 per cent since 1990 (from 756kg/t to 629kg/t)1.

The GNR figures provide evidence of the gradual decoupling of emissions and cement output, which demonstrates the significant progress made by the industry: cement production by GNR companies increased by 74 per cent between 1990 and 2011, absolute CO2 emissions increased by only by 44 per cent over this period. Between 2010 and 2011, while cement production volume covered by the GNR increased from 840Mt to 888Mt cementitious volume), specific net CO2 emissions have decreased from 638kg/t to 629kg/t of cementitious product.

Commenting on the encouraging data, Philippe Fonta, WBCSD managing director, said: “GNR demonstrates how an effective measuring, reporting and verification system can be developed and managed for and by an entire industry sector. GNR has become established as a valuable source of independently verified emissions data, which is now used globally by the cement industry to improve energy efficiency and further reduce emissions. It is also accessed widely by policy-makers, analysts and other interested stakeholders.”

According to the data, the four main drivers for the reduction in emissions are:
• investment in more efficient kiln technology
• increasing use of alternative fuels such as biomass2
• reduction in clinker content3
• an eight per cent decrease in electricity use per tonne of cement since 1990.

The 2011 data also now comprises 55 per cent of cement production outside of China, with 96 per cent coverage in Europe spanning 967 individual facilities. Four new country reports are released for the first time: Thailand, Morocco, Philippines and Egypt providing more relevant national data in these countries.

About the GNR

Now in its seventh year of publication and the largest global database of its kind, the GNR is a voluntary, independently managed database of CO2 and energy performance information on the global cement industry. The most recent data released is for 2011 in compliance with anti-trust legislation.

The GNR uses a common methodology for data collection and reporting, of which 94 per cent is independently verified.  Whilst the database is managed by the CSI, participation is nott limited to its members. Cement producers worldwide are encouraged to report their emissions through the GNR project and cement trade associations have played a particularly active role in encouraging member companies to  make their emissions data available.

The GNR data is available online at www.wbcsdcement.org/GNR

Notes

1: For specific gross CO2 emissions the reduction was 15 per cent over the same time span.
Gross CO2 emissions: direct CO2 emissions (excl. on-site electricity production) minus emissions from biomass fuel sources.

Net CO2 emissions: gross CO2 emissions minus emissions from alternative fossil fuels
Cementitious products are all clinker volumes produced by a company for cement making or direct clinker sale, plus gypsum, limestone, CKD, and all clinker substitutes consumed for blending, plus all cement substitutes produced. Clinker bought from third parties for the production of cement is excluded.

2: While a few plants have been able to replace up to over 90 per cent of conventional fuels, the global average replacement is around 13 per cent in 2011 (compared to only two per cent in 1990).

3: Clinker-to-cement ratio exhibits some variations in different regions due to the specific minerals added in the concrete manufacturing process. Globally, the average % of clinker in cement is 76 per cent (compared to 83 per cent in 1990).

To learn more about United States Carbon and our energy reduction technology that will help you become greener, cleaner, and more socially responsible please contact us at (855) 393-7555 or visit our website: www.unitedstatescarbon.com

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United States Carbon: Buildings Account for 39% of CO 2 emissions in the United States

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The commercial and residential building sector accounts for 39% of carbon dioxide (CO 2 ) emissions in the United States per year, more than any other sector. U.S. buildings alone are responsible for more CO 2 emissions annually than those of any other country except China. Most of these emissions come from the combustion of fossil fuels to provide heating, cooling and lighting, and to power appliances and electrical equipment. By transforming the built environment to be more energy-efficient and climate-friendly, the building sector can play a major role in reducing the threat of climate change.

A growing source of CO2 emissions:
  • In 2004, total emissions from residential and commercial buildings were 2236 million metric tons of CO 2 , or 39% of total U.S. CO 2 emissions—more than either the transportation or industrial sector
  • Over the next 25 years, CO 2 emissions from buildings are projected to grow faster than any other sector, with emissions from commercial buildings projected to grow the fastest—1.8% a year through 2030
  • When other CO 2 emissions attributable to buildings are considered—such as the emissions from the manufacture and transport of building construction and demolition materials and transportation associated wi th urban sprawl—the result is an even greater impact on the climate

Buildings consume 70% of the electricity load in the U.S. The most significant factor contributing to CO 2 emissions from buildings is their use of electricity:

  • Commercial and residential buildings are tremendous users of electricity, accounting for more than 70% of electricity use in the U.S.
  • The building sector consumed 40 quadrillion Bt us of energy in 2005 at a cost of over $300 billion. Energy use in the sector is projected to increase to 50 quadrillion Btus at a cost of $430 billion by the year 2025.
  • The energy impact of buildings is likely to be even greater when taking into account other energy use attributable to buildin gs. For example, the energy embodied in a single building’s envelope equals 8-10 times t he annual energy used to heat and cool the building.
  • Buildings have a lifespan of 50-100 years during which they continually consume energy and produce CO 2 emissions. If half of new commercial buildings were built to use 50% less energy, it would save over 6 million metric tons of CO 2 annually for the life of the buildings—the equivalent of taking more than 1 million cars off the road every year.

Green buildings are a vital tool in the fight against climate change

Scientists predict that left unchecked, emissions of CO 2 and other greenhouse gases from human activities will raise global temperatures by 2.5ºF to 10ºF this century. The effects will be profound, and may include rising sea levels, more frequent floods and droughts, and increased spread of infectious diseases. To address the threat of climate change, greenhouse gas emissions must be sl owed, stopped, and reversed. Meeting the challenge will require dramatic advances in technologies and a shift in how the world economy generates and uses energy.

Building green is one of the best strategies for meeting the challenge of climate change because the technology to make substantial reductions in energy and CO 2 emissions already exists. The average LEED certified building uses 32% less electricity and saves 350 metric tons of CO 2 emissions annually. Modest investments in energy-saving and other climate-friendly technologies can yield buildings and communities that are environmentally responsible, profitable and healthier places to live and work, and that contribute to reducing CO 2 emissions.

Green buildings provide abundant opportunities for saving energy and mitigating CO 2 emissions

Building green can reduce CO2 emissions while improving the bottom line through energy and other savings. Examples of measures that can be taken to improve building performance include:

  • Incorporating the most efficient heating, ventilation and air conditioning systems, along with operations and maintenance of such systems to assure optimum performance
  • Using state of the art lighting and optimizing daylighting
  • Using recycled content building and interior materials
  • Reducing potable water usage
  • Using renewable energy
  • Implementing proper construction waste management
  • Siting the building near public transportation
  • Using locally produced building materials

To learn more about United States Carbon and our energy reduction technology that will help you become greener, cleaner, and more socially responsible please contact us at (855) 393-7555 or visit our website: www.unitedstatescarbon.com

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