Climate Change and the Case for Northwest Leadership 2008 PERFORMANCE TRACK STATE CONF Ross Macfarlane Senior Advisor, Business Partnerships 2008 PERFORMANCE TRACK STATE CONF Ross Macfarlane Senior Advisor, Business Partnerships

“We are addicted to oil” Symptoms: Economic hemorrhaging: Over $50 million a day in Washington alone Fever: 5-8 degrees F. increase likely this century in PNW

“We are addicted to oil” Symptoms: Economic hemorrhaging: Over $50 million a day in Washington Fever: 5-8 degrees F. increase likely Acute national insecurity: “Right now we're borrowing money from China to buy oil from the Middle East to burn oil that's destroying our environment. Every part of that has got to change.”

Treatments for fossil fuel addiction Gas tax holiday: Make the drugs cheaper Expand exploration and production – “drill, baby, drill”: Increase the supply of drugs Quit: Steadily reduce dependence….. ….by building a clean energy economy….

Not a New Concern…

Approaching the Tipping Point: Clean energy transition drivers Climate disruption: Climate disruption: Environmental necessity drives economic opportunity Energy independence and security Energy independence and security “ The Stone Age didn’t end because they ran out of stones” Economics/Technology Fossil fuel prices high, volatile Peak oil? Clean energy coming of age

Climate and National Security  "If you're thinking about this as an environmental issue first and foremost, you're missing the point. -- Frank Gaffney, Center for Security Policy  Energy insecurity and climate stresses likely to pose biggest national security threats for this century

“Global” warming is a local, state, regional issue Impacts Impacts Causes Causes

Populations: Washington=6.1 million Iraq=24.7 million

Solutions Solutions “Global” warming is a local, state, regional issue

To Solve a Problem, It helps to know the causes

Gross GHG Emissions by Sector

No single solution…

Stabilization Wedges: Solving the climate problem for the next 50 years with current technologies Currently projected path Flat path Historical emissions 2105 “wedges” R. Socolow and S. Pacala Princeton University Stabilization

Climate Policy – Federal, State and Regional Efforts Local, State and Regional efforts have lead the way in the absence of federal leadership Federal – Game finally on, but awaiting new administration Response at scale will require coordinated action at all levels

Taking the Kyoto Pledge: From 1 City to More than 880

Washington’s Response to Climate Change Required all new fossil fuel power plants to reduce greenhouse gas emissionsRequired all new fossil fuel power plants to reduce greenhouse gas emissions (RCW 80.70) (RCW 80.70) Adopted the California Car Standards (ON HOLD DUE TO EPA FAILURE TO PROVIDE WAIVER)Adopted the California Car Standards (ON HOLD DUE TO EPA FAILURE TO PROVIDE WAIVER) Reduces CO2 emissions in newer cars and light trucks by more than 30% and in SUVs by 25%Reduces CO2 emissions in newer cars and light trucks by more than 30% and in SUVs by 25% Adopted renewable fuels standards for transportation by requiring 2% of fuel sold is biodiesel or ethanolAdopted renewable fuels standards for transportation by requiring 2% of fuel sold is biodiesel or ethanol Instituted high-performance green building standardsInstituted high-performance green building standards

Washington’s Response Cont’d Passed a renewable and energy efficiency Initiative 937- Energy Independence Act Reduced energy use by state agencies through EO Adopted appliance efficiency standards Have one of the most energy- efficient building codes in the nation

Washington Climate Action

Critical Importance of Energy Productivity as a Climate Solution Efficiency

Why Efficiency is Wedge #1… and 2 and 3 1.Get the tons 2.Overwhelmingly positive economics, with negligible environmental impact 3.We can all do it and we can all benefit “Conservation may be a sign of personal virtue but it is not a sufficient basis for a sound, comprehensive energy policy." Vice President Dick Cheney, 2001

Can We Afford a Livable Planet? Solutions are affordable; the problem isn’t Stern report: Stern report:  Cost of action: 1% of GDP  Cost of inaction: 20% of GDP EPA draft -- $2 trillion economic benefit from reductions EPA draft -- $2 trillion economic benefit from reductions Studies consistently underestimate effect of innovation and waste avoidance in reducing costs Studies consistently underestimate effect of innovation and waste avoidance in reducing costs

Solutions are affordable – 2007 McKinsey Report Source: McKinsey

“What we have before us are some breathtaking opportunities disguised as insoluble problems.” John W. Gardner

Carbon-Free Prosperity 2025 Published By: and Download the report at: or

The Big 5 Opportunities 1.Solar PV Manufacturing 2.Green Building Design Services 3.Wind Power Development 4.Sustainable Bioenergy 5.Smart Grid Technologies These industries have the potential to create more than 63,000 direct new jobs in the Pacific Northwest by 2025

Change a bulb. Change the world. Scale and hope: Small steps help us engage, and we need to be part of something big Scale and hope: Small steps help us engage, and we need to be part of something big

What can you do now? What can you do now? 1. Get it: Be aware and engaged 2. Do it: Be the solution  Clean, efficient energy  Transportation choices  Seattle CAN, Climate Partnership 3. Change it: Citizenship  Business Leaders for Climate Protection  Climate Action and Green Jobs

2 Final thoughts……

Climate Change and the Case for Northwest Leadership 2008 PERFORMANCE TRACK STATE CONF Ross Macfarlane Senior Advisor, Business Partnerships 2008 PERFORMANCE TRACK STATE CONF Ross Macfarlane Senior Advisor, Business Partnerships