Climate Change and Sustainable Development: Key Issues for Washington Realtors
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1 Climate Change and Sustainable Development: Key Issues for Washington Realtors Washington REALTORS, June 18, 2008 Ross Macfarlane Senior Advisor/Business Partnerships
2 A Defining Challenge starring REAL climate solutions Sustainable prosperity Equity Green for all What we have before us are some breathtaking opportunities disguised as insoluble problems. John W. Gardner
3 Approaching the Tipping Point: Clean energy transition drivers Energy independence and security Economics/Technology Fossil fuel prices high, volatile Peak oil? Clean energy coming of age Climate disruption: Environmental necessity drives economic opportunity The The Stone Age didn t t end because they ran out of stones Global warming is a local, state, regional issue Causes: local and regional transportation and energy decisions Impacts: local and regional resources, economies
4 Global warming is a local, state, regional issue Solutions: : clean cars; renewable energy; efficiency; transportation choices Stabilization Wedges: Solving the climate problem for the next 50 years with current technologies Efficiency 7 wedges
5 Efficiency and Conservation transport buildings industry How big is a wedge? 2 billion 60 mpg power lifestyle Why efficiency is wedge #1 and 2 and 3 1. Get the tons Quickly! 2. Overwhelmingly positive economics, with negligible environmental impact 3. We can all do it and we can all benefit
6 One Union Square Annual Energy Use 20,000,000 18,000,000 16,000,000 14,000,000 kwh per year 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 Saving 7 million kwh per year 40% power savings for 420 homes 7 million per kwh/year $452,000 Saving $452,000 per year per year 16.57% Return ROI on Investment Policy matters: US fuel economy standards are world s s weakest; automakers in decline The average new Ford gets fewer MPG than the Model T News Flash (June 2008) Compact car sales outpace trucks and SUVs -- GM cancels production at 4 factories announces intent to sell Hummer line
7 State Policy matters: Washington successes You are here Climate Action and Green Jobs HB 2815 Goals don t make markets. We need to make it real. Solutions are affordable 2007 McKinsey Report Source: McKinsey
8 Why are the economics so good? Efficiency. Leading the Way Washington s new climate action plan Net cost: Negative $900 million Reduced imports: $4.9 billion annually New jobs: 30,000.for starters
9 Climate Action and Green Jobs & House bill 2815 Responsible limits on global warming pollution established in state law Workforce training 25,000+ green jobs Reductions in vehicle-miles travelled Some key areas for Realtors and Developers VMT Provisions of Climate Action Bill Developments under SEPA, and NEPA Growth Management Act Green Buildings Renewable Energy
10 VMT Reduction Targets Requires steps to reduce annual per capita vehicle-miles traveled (VMT). Benchmarks: 18% reduction by 2020, 30% by 2035, and 50% by 2050 State and local governments to develop tools and strategies to achieve VMT benchmarks. Bill does not limit driving by Washington residents. Instead, it requires a paradigm shift for transportation and land use planning Prioritizes investment in sustainable transportation infrastructure and communities. Developments Under SEPA and NEPA SEPA already requires proponents of major projects to analyze global warming pollution and potential mitigation measures. Ecology beginning a stakeholder process This follows the lead of King County and the City of Seattle Need to develop clear guidelines for thresholds and mitigation. Significant litigation under California counterpart (CEQA) highlights need for clarity.
11 The Local Solutions (GMA) Bill Opens the door to using Washington s Growth Management Act (GMA) as a tool to address climate change. As signed into law, the bill: Directs CTED to develop tool to measure land use related greenhouse gas emissions. Creates a competitive grants program for cities and counties Establishes a stakeholder process to make recommendations on policy changes Green Building in Washington statewide law requiring new public buildings to meet LEED silver standards I-937 passed, requiring electric utilities to pursue all low cost energy conservation opportunities in their communities. Washington is a green building leader: significant concentrations of leading companies providing design, development and installation
12 Green Building The market for green building and renewables has skyrocketed Role of LEED and other certification Despite the slump in the overall housing market, the green building industry has had annual growth of as much as 30%. On average, green buildings in Seattle stay on the market for 24% less time and sell for 4.8% more than less environmentally friendly buildings. Renewable Energy Trend for commercial tenants to incorporate renewable energy into buildings Distributed solar PV Passive Geothermal/heatpump technology Some of the most exciting developments are happening with innovative legal and financial arrangements, such as power purchase agreements (PPAs)
13 Learning new tricks Conservationists: Build stuff Technofixes are good! Nothing is spotless Non profit isn t anti-profit Private investment is the big driver Business community: Cheap fossil fuels aren t business as usual won t t work Strong policy is good business This is real and urgent. Businesses should lead the way. 2 Final thoughts
14 Climate Change and Sustainable Development: Key Issues for Washington Realtors Washington REALTORS, June 18, 2008 Ross Macfarlane Senior Advisor/Business Partnerships
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