HOW CARBON DOWN PROFITS UP IS WORKING FOR BUSINESSES

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HOWCARBON DOWN PROFITS UPIS WORKING FOR
BUSINESSES

• JIM WALKER, C00, THE ?CLIMATE GROUP
• MGCC CONFERENCE, MAINE
• MAY 2006

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PUBLIC AWARENESS MOMENTUM IS GROWING
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CORPORATE PERFORMANCE THE FOCUS IS ON CLIMATE
CHANGE
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THE LOW CARBON ECONOMY
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European Summer Temperatures
A CARBON-CONSTRAINED ECONOMY IS INEVITABLE
2060s
observations HadCM3 Medium-High
2040s
2003
Temperature anomaly (wrt 1961-90) C
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POTENTIAL SOLUTIONS PRINCETON WEDGES
After S. Pacala and R. Socolow 2005
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Two billion cars _at_ 60 mpg (now 30 mpg) Halve
annual car mileage to 5,000 miles All new
buildings appliances 25 more efficient than at
present Doubled coal output at 60 efficiency
(32 today) Quadruple gas power (displacing
coal) Carbon capture storage from 800GW coal
capacity or 1600GW gas
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Doubled nuclear capacity Scale up wind power 50
times (displacing coal) Scale up photovoltaic 700
times (displacing coal) 1/6 world cropland
dedicated to ethanol End deforestation and double
reforestation effort Conservation tillage on all
cropland
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Competing for the Low Carbon Economy

• JEFF IMMELT, Chairman/CEO GE
• On GE Ecomagination
• We are committed to being the leader in
  environmental technology solutions. It is an area
  that fits our current product offerings and where
  we see significant growth and profitability
• May 2005

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Competing for the Low Carbon Economy

• LORD BROWNE, Group Chief Executive, BP on 1.8Bn
  investment in Alternative Energy
• We are now at a point where we have sufficient
  new technologies and sound commercial
  opportunities within our reach to build a
  significant and sustainable business in
  alternative and renewable energy As the pricing
  of carbon develops through trading schemes and
  other initiatives, the market will grow rapidly
  as low-emission technologies displace less clean
  forms of power generation
• BP Nov 28 1005

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Competing for the Low Carbon Economy

• VINOD KHOSLA, Cofounder, Sun Microsystems on
  biofuels
• I'm talking about something that will replace 50
  percent, 70 percent, or 100 percent of our
  petroleum. We can permanently change our
  infrastructure and our direction in the next five
  years. If Brazil can do this, why can't we?
• PBS Newshour April 13 2006

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Competing for the Low Carbon Economy

• RICHARD BRANSON on his 500M commitment to
  cellulosic ethanol
• "Through my business contacts, hopefully I can
  play a small part in making a difference, and
  sometimes making decent money by making a
  difference."
• Independent, UK, May 8 2006

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CARBON DOWN PROFITS UP
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THE ART OF THE POSSIBLE CORPORATIONS

• gt DUPONT reduced GHG emissions 72 on 1990 levels
  by 2003 and saved US2 billion
• gt IBM reduced emissions 37.5 on 1990 levels by
  2004 and saved US791 million
• gt 3M 37 reduction in worldwide emissions between
  1990 and 2004
• gt BT reduced energy-related CO2 emissions 71
  between 1991 and 2004. 1.1 billion saved.

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THE ART OF THE POSSIBLE CITIES

• gt Berlin reduced emissions 13.8 on 1990 levels
  by 2000 with 2 million in annual budget relief
• gtToronto reduced emissions 42 in municipal
  facilities between 1990 and 1998 - CA20-30
  million from landfill methane capture
• gt Woking reduced CO2 emissions 77.4 on 1990
  levels by 2004 and saved 5.4 million in
  municipal energy and water bills
• gt Seattle reduced municipal emissions by more
  than 60 between 1990 and 2005

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CONCLUSIONS
A low carbon economy is inevitable, and momentum
is growing rapidly We can stabilise and reduce
emissions but we need to pursue a wide range of
strategies Leadership is compatible with good
business performance Real progress needs - Real
leadership - Collaboration across sectors to
develop best practice - The right market
framework long, loud and legal Early movers
will gain long term advantage
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