1. Using a Sector Approach to Address Energy and Climate Challenges Symposium on Innovating for Sustainable Results January 9, 2008

2. Why use a sector approach? Technical, structural, and economic differences among industrial sectors can determine which strategies are most effective in producing environmental progress at lowest cost. Technical and economic similarities among firms within a sector, along with common trade and technical association memberships, can make sector-wide strategies effective and far-reaching.

3. EPA’s Sector Strategies Division Works with trade associations and firms in 13 key industries, including chemicals, oil and gas, cement, agribusiness, forest products, and others. Crafts analyses, voluntary agreements, and informs policy across environmental programs. Sector-level measurement of environmental impacts is critical to our approach.

4. Impacts from Energy Use March 2007: published “Energy Trends in Selected Manufacturing Sectors” –examines criteria air pollutant and CO2 emissions from energy generation on-site. –examines barriers and opportunities for better environmental outcomes.

5. Key findings Top 10 sectors account for 85% of all industrial energy use. Primary fuel use varies by sector and geography, as do best opportunities and barriers to progress.

6. GHG Impacts Under review: sector-specific GHG analysis, including process emissions, fuel combustion, and upstream electricity. –One-third of GHG emissions are from purchased electricity, which significantly affects the relative impacts of sectors. –Emissions from the construction and food are relatively larger than generally assumed.

7. What are the Big Questions for formulating industrial GHG strategies? Which sectors are the biggest emitters? Which sectors have the greatest opportunities to reduce emissions? Which sectors have barriers to improvement that EPA can do something about? How do we set sector emission baselines for potential trading, credits, standards?

8. Next Steps Draft sector GHG emissions analysis out for comment later this month. Ongoing discussions with trade associations regarding reduction goals. Internal EPA workgroup looking at regulatory barriers to progress, greater program coordination.

9. Contact Paula Van Lare Forest Products Sector Liaison Sector Strategies Program Vanlare.paula@epa.gov 202-566-2951