2. ENVIRONMENTAL DEFENSE Climate Change Challenge and Opportunity Michael Shore DENR Climate and Mercury Workshop April 21, 2004

3. ENVIRONMENTAL DEFENSE2 Two Reasons NC should pay attention to climate change: – Challenge: Environmental/Economic Issues – Opportunity: Carbon Marketplace

4. ENVIRONMENTAL DEFENSE3

5. 4 CarbonMarketplace Registry-or-Reporting Selling Credits Supply Ag, Hog, Forestry, Industry Demand Utilities, Manufacturers Reporting Targets Caps (Buying) Pilot Market

6. ENVIRONMENTAL DEFENSE5 Emission credit dollars will go to out of state suppliers Emission credit dollars will go to out of state suppliers The longer NC waits, the higher the cost of reduction efforts The longer NC waits, the higher the cost of reduction efforts The longer NC waits, the worse the environmental/economic impacts The longer NC waits, the worse the environmental/economic impacts If NC is asleep at the wheel...

7. ENVIRONMENTAL DEFENSE6 North Carolina is already experiencing the effects of climate change and will continue to do so North Carolina is already experiencing the effects of climate change and will continue to do so There will be national standards, eventually, and greenhouse gas marketplace There will be national standards, eventually, and greenhouse gas marketplace Will NC be ready or caught off guard? Will NC be ready or caught off guard? Bottom Line on Climate

8. ENVIRONMENTAL DEFENSE7 Registry-or-Reporting Selling Credits Supply Ag, Hog, Forestry, Industry Demand Utilities, Manufacturers Reporting Targets Caps (Buying) Pilot Market

9. ENVIRONMENTAL DEFENSE8 Greenhouse gases are a blanket that keeps the Earth warm

10. ENVIRONMENTAL DEFENSE9 CO 2 & temperature are correlated

11. ENVIRONMENTAL DEFENSE10

12. 11 Global temperatures are rising

13. ENVIRONMENTAL DEFENSE12 Risks and Impacts $

14. ENVIRONMENTAL DEFENSE13 A rise in global average temperature has already occurred and temperature will continue to rise over the next 100 years Warming is mostly due to human activities – – mainly the burning of fossil fuels The greater our emissions of greenhouse gases, the more the severe the adverse impacts of climate change will be. – Assessments by the US National Academy of Sciences and the United Nations Intergovernmental Panel on Climate Change (IPCC) Scientific Consensus

15. ENVIRONMENTAL DEFENSE14