Comprehensive Climate Action And Economic Planning
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1 Comprehensive Climate Action And Economic Planning November 18, 2009 Thomas D. Peterson, Center for Climate Strategies 1899 L Street, NW, Washington, DC 20036, tpeterson@climatestrategies.us, (202) , x101
2 2 Center for Climate Strategies Leading Catalyst Policy Advancement Nonpartisan, Non Advocacy, Nonprofit 501c3, 30+ team members National leader on policy development and consensus building since 2004 Projects with 40+ states, 3 regions, 1,500+ stakeholders 22 U.S. State Climate Action Plans Policy facilitation, design, analysis, implementation Mitigation and Adaptation All sectors and instruments Funded by foundations, donors, agencies CCS Assisted States, /18/09
3 3 U.S. State Climate Actions Contents Coverage 32 climate action plans completed or in progress Cover 2/3 of U.S. economy and population Cover ½ of US GHG emissions Cover all sectors, tools, levels of government Include cost effectiveness Over 1,500 Stakeholders
4 4 Importance of State Initiatives Value Added Global Significance Establish comprehensive planning capacity and fact base Identify best actions and instruments Integrate climate, energy, economic, environmental development Inform and support federal action Mobilize and target investments of resources International Agreement National Plans Support partnership actions State Commitments Local Commitments 11/18/09
5 New York State 5 11/18/09 10/15/
6 6 Climate & Economic Recovery Jobs and Income Response Curves Save energy, money Boost disposable income Boost investment Create jobs New, home grown energy New technology and products Value added investment New energy future Local actions Analysis by CCS, 2008
7 7 U.S. State Plan Results (Sample) State Policy Options Degree of Unanimity AZ 49 92% Amount of GHG Reductions 2000 level by 2020 Half 2000 level by 2040 CA n/a n/a AB-32: 1990 level by 2020 CO 70 87% 37% below projected emissions by 2020 FL 50 High 33% below 1990 level by 2025 MD % 25% below 2006 level by 2020 MN 46 83% 15% below 2005 level by % below 2005 level by 2050 MT 54 98% 1990 level by 2020 NC 56 85% NM 69 97% 47% below projected emissions by level by % below 2000 level by 2020 Overall NPV Cost or Savings $5.5 billion savings AB-32 $4 billion savings ~$3 billion savings $28 billion savings $2 billion savings ~$1.3 billion energy savings ; $725 million cost $78 million savings $7.5 billion savings $2.2 billion savings Net Job Gain 289,000 AB-32 83,000 Not assessed 148,000 Not assessed Not assessed Not assessed 15,000 Not assessed
8 8 U.S. Costs/Savings By Sector $125 Marginal Cost/Savings Curves of US by Sector, 2020 (Center for Climate Strategies, 2008) $100 $75 TLU RCI ES AFW $/Ton GHG Removed $50 $25 $0 -$25 -$50 -$75 -$100 -$ Bang for the Buck Percentage Reduction of 2020 All-Sector Baseline GHG Emissions (Over 900 Proposed Actions)
9 9 U.S. National Scale Up Greenhouse Gas Reduction Potential of United States With Sector Breakdowns (CCS, 2009) 9,000 Key Action Areas MMtCO 2 e 8,500 8,000 7,500 7,000 6,500 Total U.S. GHG Reductions: 41% Below 2020 BAU 10% Below 1990 Levels by 2020 ES RCI TLU 6,000 AFW 5,500 5, Analysis by CCS, 2008; 20 states, 900+ Options
10 10 Comprehensive Policy Integration Needs Solutions Achieve GHG targets Minimize costs Maximize savings Federal Caps and Price Signals Maximize co-benefits Maximize consensus Address governance Maximize implementation National Policies & Measures State & Local Measures
11 11 Implementation Barriers Investment (Outlays) Authority (Legal and Administrative) Markets (Split Incentives) Capacity (Program and Market) Awareness and Acceptance (Consumers, Producers)
12 12 Progress Through Action! Emissions baselines Recent and planned actions New policy actions and goals
13 13 Collaboration
14 14 CCS Ten Step Planning Process 1. Identify full range of existing policy actions and choices 2. Conduct gap analysis, innovate and expand range of choices 3. Narrow list for further analysis and development 4. Formulate draft policy specifications and tools 5. Formulate draft analytical approaches for analysis (best data, assumptions, methods) 6. Conduct preliminary analysis of options, iterate to final 7. Conduct analysis of cobenefits, feasibility as needed 8. Conduct aggregate impact analysis of full set of policies 9. Iterate to final agreement on policy recommendations and overall goals 10. Issue final report and recommendations
15 15 Policy Action Portfolio Sector Codes and Standards Targeted Funding Technical Assistance Price Mechanisms Agreements Disclosure Information and Educations Agriculture??????? Forestry??????? Waste??????? Transportation??????? Heat & Power Supply Residential, Commercial, Industrial Energy Use?????????????? Full Economy???????
16 New York State Greenhouse Gas Emissions by Source Category, /18/09 10/15/
17 17 U.S. State GHG Growth Rates GHG Growth Rate 160% 140% 120% 100% 80% 60% 40% 20% State GHG Emissions Growth (CCS Analysis, 2007) CT ME NC NY FL RI US AK AZ CA CO ID MT NM NV OR SD UT WA WY 0% 1990 Year 2020
18 18 U.S. GHG Forecast Changes Projected CO2 Emissions by Year in Which Projection Was Made Projected MMTCO2e 8,500 8,000 7,500 7,000 6, Projection 2006 Projection 2007 Projection 2008 Early Release Projection 2008 Projection 2009 March Projection 2009 April Projection 6,000 5,
19 19 Factors Reducing Emissions Recent and planned federal actions Recent and planned state and local actions Anticipatory actions Unrelated actions Price changes Recession effects
20 20 U.S. Electricity Sales Projections Electricity Sales - USA AEO2005 AEO2006 AEO2007 AEO TWh
21 21 U.S. Electricity CO2 Emissions Electric sector CO2 emissions 4000 AEO2005 AEO million tons AEO2007 AEO2009
22 22 U.S. Transport Fuels Projection U.S. Transport Fuel GHGs 2007 vs US Full Fuel Cycle Emissions (MMCO2e) 2,400 2,200 2,000 1,800 1,600 1,400 1,200 EISA 2007 CAFE Obama 2009 CAFE Obama 2009 CAFE + Incentives 1,
23 23 Vehicle Miles Traveled Growth Annual VMT (billions) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, US Total VMT (AEO 2008) Heavy Duty Trucks Medium Duty Trucks Light Trucks Automobiles
24 24 Major Policy Options Agriculture, Forestry and Waste (AFW) Transportation and Land Use (TLU) Residential, Commercial and Industrial (RCI) Energy Supply/Heat and Power (ES) Forest Retention Urban Forestry Transit Reforestation/ Afforestation Soil Carbon Management Nutrient Management Smart Growth/Land Use Renewable Fuel Standard (biofuels goals) Vehicle Purchase Incentives, including rebates Anti-Idling Technologies and Practices Building Codes Demand Side Management Programs High Performance Buildings Coal Plant Efficiency Improvements and Repowering Renewable Portfolio Standard Carbon Capture Storage and Reuse Appliance standards Nuclear Power Combined Heat and Power Manure - Anaerobic Mode Shift from Truck Digestion and to Rail Methane Use Recycling of Municipal Solid Waste Landfill Gas Management
25 25 TLU Cost Effectiveness $80 TLU Marginal Cost Curve of SGA, 2020 (Center for Climate Strategies, 2009) Marginal Cost ($/tco2e) $60 $40 $20 $0 -$20 -$40 -$60 -$80 -$100 TLU-4: RFS TLU-6: Transit TLU-5: Smart Growth TLU-3: Mode Shift from Truck to Rail TLU-2: Vehicle Purchase Incentives TLU-1: Anti-Idling Technologies and Practices Percentage Reduction of 2020 Economy-wide BAU GHG Emissions Draft Preliminary Results
26 26 ES Cost Effectiveness $60 ES Marginal Cost Curve of SGA, 2020 (Center for Climate Strategies, 2009) $50 $/tco2e $40 $30 $20 ES-3: CCSR ES-2: Nuclear $10 ES-1: RPS $0 ES-4: Coal Plant Efficiency -$10 -$ Percentage Reduction of 2020 Economy-wide BAU GHG Emissions Draft Preliminary Results
27 27 RCI Cost Effectiveness $20 RCI Marginal Cost Curve of SGA, 2020 (Center for Climate Strategies, 2009) $/tco2e $10 $0 -$10 -$20 -$30 -$40 -$50 -$60 RCI-5: CHP RCI-4: Building Codes RCI-2: High Performance Bldgs RCI-1: DSM RCI-3: Appliance Standards Percentage Reduction of 2020 Economy-wide BAU GHG Emissions Draft Preliminary Results
28 28 AFW Cost Effectiveness $/tco2e $60 $50 $40 $30 $20 $10 $0 -$10 -$20 AFW Marginal Cost Curve of SGA, 2020 (Center for Climate Strategies, 2009) AFW-2: Nutrient Mgt. AFW-1: Soil Carbon Mgt. AFW-7: Reforestation/Afforestation AFW-11: MSW Landfill Gas Mgt. AFW-8: Urban Forestry AFW-6: Forest Retention AFW-10: Enhanced Recycling of MSW AFW-3: Livestock Manure Percentage Reduction of 2020 Economy-wide BAU GHG Emissions Draft Preliminary Results
29 29 EE and Cap-&-Trade Costs Doubling of EE levels for power generation cuts C&T allowance price more than in half. (MGA) $ Analysis by MGA, 2009
30 30 Florida Energy & Climate Plan Statewide Goals and Targets GHG Inventory and Forecast Climate Vulnerability Assessment Mitigation policy actions Adaptation policy actions Supporting analysis and documentation Reporting and Monitoring
31 31 Florida GHGs
32 32 FL GSP: Sector Results ($Billions)
33 33 FL Jobs (1,000s) Policy Option Based Results
34 34 FL TLU Policies, Jobs, Growth Florida Policy Recommendation 2017 GHG Savings 2025 GHG Savings $ NPV Millions $ Ton GHG Removed Develop and Expand Low-GHG Fuels $15,161 -$142 Low Rolling Resistance Tires and Other Add- On Technologies Improving Transportation System Management $1,259 -$ $5,106 -$80 Increasing Freight Movement Efficiencies $21 $ Cumulative Jobs (Thousands) GSP Growth (Billons) $0.10 $0.19 $0.39 $0.63, NPV $2.93
35 35 Florida Results GHG Reductions 50 full consensus climate measures in all sectors, plus cap and trade Implementation substantially underway Mitigation Plan: GHGs 20% below 1990 levels by 2020 $28 billion net economic savings, 148,000 net job gains, $37 billion net economic expansion Costs/Savings Adaptation Plan: Covers all risk response areas, includes full set of early actions 125 stakeholders and technical work group members, 7 stakeholder meetings, 75 technical work group meetings
36 Maryland Results GHG Reductions full consensus climate measures in all sectors, plus cap and trade Implementation substantially underway Mitigation Plan: GHGs 13% below 1990 levels by 2020 $2 billion net economic savings Costs/Savings Adaptation Plan: Covers all risk response areas, includes full set of early actions 27 stakeholders and technical work group members, 10 stakeholder meetings, 100 technical work group meetings
37 Michigan Results GHG Reductions Recommended Climate Policy Actions in All Sectors 7 Stakeholder meetings, 75 Technical Work Group Meetings Full Consensus on 52 Recommendations (Supermajority on Nuclear Power) $10 Billion Net Economic Savings from Full Analysis of 33 Quantified Actions Pathways to Achieve Statewide Goals of 20% Below 1990 Levels by 2020 Next Steps include Priority Setting, Macro Economic Analysis, Investment Targeting, Early Actions Costs/Savings
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