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Climate Action Planning

Steve Messner and Fiona Berry SAIC 10th June 2009

Be a leader. Be informed. Be a part of BC3. The Business Council on Climate Change.

Agenda
1. What is a Climate Action Plan (Fiona)
• Examples and content of a CAP

2. GHG Forecasting (Steve)
• Looking at future GHG ‘BAU’ emissions

• GHG Reduction Targets (Fiona) • GHG Reduction Strategies (Steve)
• Identifying and prioritizing strategies

5. Implementation and Outreach (Fiona) 6. Case Studies (Steve)

Introduction
What is a Climate Action Plan? An implementation plan for reducing GHG emissions from an organization/entity’s operations.
• Follows inventory of emissions (can’t manage what you don’t measure) • Sets targets for GHG reduction • Outlines proposed GHG reduction strategies • Provides proposed implementation • Can be strategic or detailed, can be proactive or reactive

Examples
Examples of CAP’s

• Countries, cities, regions, corporations
• Internal or external • Separate or part of wider sustainability initiatives/reporting

Content of a CAP
1. Introduction
• • Vision/Mission/Objective Context

1. Proposed Strategies
• • Detailed e.g. Berkeley 157 pages High level e.g. India’s “eight national missions”

2. Overview of GHG Inventory/Emissions Profile
• • • Past e.g. 1990 level Present e.g. baseline Future e.g. projected BAU emissions

2. Implementation Plan
• How will you get there and by when?

3. GHG Reduction Target 4. Methodology/Approach
• • How was it conducted? Who was involved?

3. Appendices
Inventory Existing strategies Other supporting documentation Consider your audience Represent information graphically Include case studies • • •

GHG Forecasting
• Understanding “Business As Usual” • Timeframes – short (2015), medium (2020) and long (2050) • Must tie in with future business planning function
Tons

CO2 Equiv. Emissions Forecast
12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 Year

• Different business segments can be individually forecast and summarized • Often best to develop GHG indicators for business – e.g., GHG per unit of production or per unit of raw material input

GHG Forecasting
• Scenario planning (energy prices)

GHG Forecasting
• Regulatory planning (AB32, pending federal climate bills)

GHG Reduction Targets
• Setting your target • Be realistic – know your abatement options and costs • Will you be regulated in the future? • Keep track of your actions • Early actions • Early regulatory actions taken by government • Early optional reductions taken by peers • Strategic timing “Stay one-step-ahead of the competition. But if you are twosteps-ahead, you lose the crowd.”
- David Bresch, Head of Atmospheric Perils Group, SwissR

GHG Reduction Targets
• Examples of targets
Reduce GHG emissions by 7 percent in energy and utility customers’ operations from 2004 levels by 2008. Reduce U. S. G HG emi ss ions by 16 percent per uni t o f product ion v alu e f rom 20 00 to 20 05.

Achieve an absolute 10 percent reduction in PFC emissions from semiconductor manufacturing processes from 2000 levels by 2005

GHG Reduction Targets
• EPA Climate Leaders target setting requirements
• Corporate-wide (including at least all U.S. operations) • Based on the most recent base year for which data are available • Achieved over 5 to 10 years • Expressed as an absolute GHG reduction or as a decrease in GHG intensity • Aggressive compared to the projected GHG performance for the Partner’s sector
• goal is evaluated against a projected benchmark GHG emissions improvement rate for the sector • EPA expects every goal to be markedly better than the projected benchmark performance for the sector

• Consider regulatory goals e.g. AB32 Scoping Plan, federal

climate change bills

GHG Reduction Strategies
• Brainstorm strategies • Identify best practices • Consider • largest sources • categorizing sources • easy wins • building on existing initiatives • adaptation as well as mitigation

GHG Reduction Strategies
• Prioritization evaluation criteria • ROI • implementability • GHG reduction • macro-economic benefits • Compliance spectrum (cost effectiveness $/ton CO2 reduction) • Leadership spectrum (transformative issue, relate to key metrics, lending in clean tech - what are the emerging technologies)

GHG Offsets
• Standards most likely to be valid under future cap-andtrade
• Climate Action Reserve
• EPA Climate Leaders • RGGI • These are based on standardized offsets protocols

• Many other GHG offsets standards
• The Voluntary Carbon Standard (VCS) • Gold Standard • CarbonFix • Climate, Community, and Biodiversity • Greenhouse Friendly and VER+ • These are typically based on more time-consuming project-based protocols

• CDM

Implementation Planning
Data Strategy Title Responsible Agency Initiation Year Implementation Schedule Title and number of strategy Key roles and responsibilities for implementation of the strategy including division and key point of contact name and details Year at which the reduction strategy will begin implementation (this may be a historical date for existing strategies) Identify whether implementation will occur over a monthly, annually, bi-annually or multi-year schedule. Strategies can also be grouped according to short (2010), medium (2015) and long term (2020) timeframes in line with the GHG inventory, forecast and set reduction targets. A general description of the strategy and the topic area A more detailed description of the technical elements of the strategy with appropriate resources. A high level plan for implementation including actionable items The estimated annual GHG emissions reductions from the proposed strategy. The capital cost and payback period for the strategy based on known literature or experience. Key dates and milestones for implementation of the strategy e.g. energy efficiency on a facility-by-facility basis, hybrid technologies for each new round of fleet purchases Metrics that will help to track progress of the strategy e.g. kWh saved or produced Description

Strategy Description - General Strategy Description Technical Implementation Plan GHG Emissions Reduction Financial Cost Key Milestones Key Performance Indicators

Ongoing Implementation

GHG INVENTOR Y

Annual update

2 or 5 year public update ? Annual interna l update ?

CLIMATE ACTION PLAN

Develop Policy and Communication Strategy
• Gain support from senior leadership • Identify change initiators, implementers and opposition • Develop both cross-functional and specialized teams • Create a clear connection between climate change and business strategy • Implement specialized internal programs • Tie performance to rewards and bonuses • Create public recognition through award programs • Encourage employees to plant trees, telecommute, teleconference • Create internal marketing and educational programs • Encourage participation in programs • Offer financial support for low carbon behaviors • Purchase emission offsets

External Outreach
• External outreach is critical to success • Outside groups can provide knowledge, independent perspectives and avenues for advancing business objectives. • Non-Government Organizations, government, the broader public and the investment community • External groups sometimes oppose climate initiatives. Government and trade associations were named as the number one and two sources of resistance. • Federal- or state-level lobbying • The steps in a firm’s climate strategy have to fit with each other and with overall strategic objectives; external perception must not be different than internal reality

Programs & Information
• Consider joining a group or participating in a program to help you along the way
• BC3 www.bc3sfbay.org • California Center for Climate Action www.centerforclimateaction.org/ • EPA Climate Leaders www.epa.gov/stateply • US Climate Action Partnership www.us-cap.org • ICLEI www.iclei.org • Sustainable Silicon Valley www.sustainablesiliconvalley.org

• Online Information Resources
• Pew Climate Centre www.pewclimate.org • World Resources Institute www.wri.org

Case Studies
• Compliance driven – Sacramento Municipal Utility District • Opportunity driven – Bank of America

Thank You & Discussion
Please contact:

Steve Messner Ph: 858.220.6079 E-mail: steven.d.messner@saic.com Fiona Berry Ph: 510-284-7639 E-mail: fiona.l.berry@saic.com
Learn how SAIC’s energy and climate change team can help you.