1. Effective Strategies for Climate Risk Mitigation Tom Kerr US EPA

2. Overview Background Climate Leaders and corporate GHG management
ENERGY STAR and corporate energy management
Clean energy investment
I will briefly discuss the U.S. approach to climate change and U.S. emissions sources and reduction options. Then I will discuss the specific policy instrument of voluntary programs, highlighting ENERGY STAR, the Landfill Methane Outreach Program, the Voluntary Aluminum Industry Partnership, and our new Climate Leaders program, as case studies of successful industry voluntary programs. Finally, I will describe the accomplishments of these programs and our projections for the future.

3. EPA’s Climate Partnerships
Widespread partnerships
7,000+ partners
across industry, service sector, public sector
cover all major emissions sources
Achieving real results
66 MMTCE reductions in 2001 alone
>500 MMTCE locked in through 2012
Spurring investment in cost-effective technologies
Delivering value-added tools & services
Climate Leaders GHG Inventory Management Plan
ENERGY STAR corporate Energy Management Plan
Clean energy project assistance
The U.S. is pursuing a broad range of climate strategies including:
-voluntary private-public partnership programs
-research and development investments and tax incentives for energy efficiency and renewable energy technologies
-appliance standards that increase the minimum efficiency level of products
-financial incentives, such as grants to states and localities
-programs to reduce ghg emissions from Federal buildings & transportation
These programs are achieving real results: in 2000 alone, the U.S. climate programs have reduced ghg emissions by 66 MMTCE (242 Tg CO2 Eq.) as reported in the U.S. Third National Communication to the Framework Convention.
And investments made to date through EPA’s voluntary programs have locked-in emissions reductions of more than 500 MMTCE (1,800 Tg CO2 Eq.). This is documented in EPA’s Climate Protection Partnerships Divisions’ 2001 Annual Report available at:
Finally, these programs are spurring technological investment
-addressing most major emissions sources
-focusing on cost-effective opportunities
-delivering multiple benefits, such as reduced air pollution
-and have a strong track record over the past decade.

4. Voluntary Climate Risk Mitigation – Drivers for Action
Cost savings
Influence policy development
Pressure from financial sector
Public recognition
Brand enhancement
Competitive advantage
Pressure from environmental groups
CEO believes it is the right thing to do

5. Corporate GHG Management
Develop a comprehensive climate change strategy
Perform corporate-wide GHG inventory
Set corporate-wide GHG emissions reduction goals
Identify low-cost mitigation options
Ensure credibility
Partner with states, federal government, NGOs
Develop an Inventory Management Plan that demonstrates a sound process is in place
Reevaluate progress periodically and publish results

6. Corporate Energy Management
What - Manage reductions in energy use across all facilities
Key Activities
Establishing organizational commitment
Measuring energy performance
Creating and implementing action plans & projects
Monitoring responsibility for energy use
Evaluation and focus on continuous improvement
Ensuring energy efficiency procurement, design, and operations
Why – Companies with strong programs can reduce energy use (and GHG emissions) by 10-30%
The US EPA has seen a significant difference between organizations that effectively manage energy and those that don’t.
Those organizations that are effective, have strong centralized energy programs and take a management systems approach to continuously improving energy performance.
Unfortunately, most corporations lack a comprehensive program for addressing energy management. Energy management is decentralized and technology focused, frequently missing significant opportunities to reduce energy through better operational practices.
Who should be addressing corporate energy use? EPA has seen that organizations with centralized corporate energy offices are most effective.
WHAT these offices do is manage energy use across all organizations…

7. California Corporate Leaders
CalSTERS – GreenWave Program for Real Estate
Require all real estate holdings to be benchmarked and tracked using the EPA’s (ENERGY STAR) National Performance Rating System for buildings
Holdings scoring a 75% must implement an energy reduction action plan that draws from ENERGY STAR guidance
California Portland Cement
Established corporate energy program based on the ENERGY STAR approach
Participating in ENERGY STAR Cement Industry Focus to create a plant Energy Performance Indicator (EPI) to benchmark cement plant energy efficiency
Saved an estimated 138,135,996 kBtu in 2004
Two examples of two approaches towards energy management by two leading California organizations.

8. Energy Management – Policy Considerations
Whole Building Energy Performance
Measure efficiency using normalized metrics of total energy intensity
Incorporate whole building comparative energy benchmarking
Promote a whole building, sequenced approach for facility upgrades to avoid equipment oversizing
Tie benchmarking to rebate programs
Reward buildings with improved benchmark scores
Improved Operational Approaches
Support building operator training
Orient audit and other programs to address operational and management options – often no cost/low cost
Integrate whole building energy performance into new construction

9. Clean Energy Investment
Combined Heat and Power
Dramatically more efficient/less polluting
Enhanced reliability/control over energy use
Reduced gas use
Explore ‘waste/opportunity’ fuels
Green Power Purchasing
Electricity use often largest source of emissions
Green power available nationally
New products offer gas price hedge
Need to negotiate with providers for best deal
Mention increase value/reduce cost (bang for env buck) argument for GPP
EPRI work just getting started; done next year. Jerome Blackman managing ERG/EPRI to do this work. EPRI document on env aspects of SF6 coming out this winter.

10. Getting Started With GHG Management
EPA’s Climate Leaders Offers
Credibility through EPA review of inventory
Technical inventorying assistance, including assistance with an Inventory Management Plan
Coordination with other climate efforts
State (CA CCAR), international, federal
Peer exchange
Partners demonstrate leadership by developing comprehensive climate change strategies
Currently 67 partners; 28 have set GHG targets

11. Getting Started With Energy Management
ENERGY STAR Can Help With:
Establishing an Organizational Commitment
Measuring Energy Performance
benchmarking facilities with Portfolio Manager
Demonstrating Financial Value
earning/share, asset value, NOI
Recognition for Leadership
ENERGY STAR label
calculation of environmental benefits of energy savings
ENERGY STAR offers a unique set of tools to help facilitate energy management. These include:
Partnering with Energy Star. This often serves as a good first step in securing high level commitment.
EPA has developed energy performance ratings for building including offices, schools, supermarkets, lodging and hospitals to help asses energy use and benchmark. We are also developing performance indicators for plants- with auto assembly first.
Tools help quanitfy the value of energy savings beyond payback- and into earnings per share and asset value of properties as a result of energy efficiency investments.
And we provide government recognition linked to environmental protection- for both individual buildings and organizations as a whole. This provides tremendous momentum for energy programs.

12. Getting Started With Clean Energy Investment
EPA’s CHP Partnership offers
Feasibility assessments
Referrals to developers/equipment suppliers
Technology and market analyses
Recognition for leadership
Calculation of environmental benefits
EPA’s Green Power Partnership offers
Easy-to-use Procurement Guide
Referrals to providers

13. EPA Office of Air & Radiation
Contact Information
Tom Kerr
EPA Office of Air & Radiation
tel. 202/