1. Overcoming challenges to building green power markets

2. Climate change is one of the key challenges of the 21st century Source: “Climate Change: State of Knowledge Report,” Office of Science and Technology Policy, Executive Office of the President, 1997

3. Burning fossil fuels is the largest source of US man-made greenhouse gas emissions... Source: US EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2002 (2004), Table ES-3. Does not include sinks. 82 Energy generation from fossil fuels 7 4 Industrial processes & manufacturing Agriculture US GHG emissions by source (2002) Percent, 100%= 6,934 Tg CO 2 e* * Tg CO 2 e = Teragrams of carbon dioxide equivalents 7 Fuel processing & other

4. ...and the largest source of corporate GHG emissions in the US 48 16 US industrial sector GHG emissions (2002) Purchased electricity On-site energy generation Percent, 100%= 1,987.2 Tg CO 2 e * 76 24 US commercial sector GHG emissions (2002) Purchased electricity On-site energy generation Percent, 100%= 970.6 Tg CO 2 e * Industrial processes & manufacturing 36 Source: US EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2002 (2004), Table ES-6. Does not include sinks. * Tg CO 2 e = Teragrams of carbon dioxide equivalents

5. Green power Energy efficiency Process improvements Switching to green power is a strategy for reducing corporate GHG emissions Carbon sequestration

6. In 2000, WRI convened the Green Power Market Development Group Developing corporate markets for 1,000 MW of new, cost-competitive green power by 2010 Alcoa Inc. Cargill Dow LLC Delphi Corporation DuPont General Motors IBM Interface Johnson & Johnson Kinko’s Pitney Bowes Staples The Dow Chemical Company

7. The Group is pursuing several forms of green power Wind Solar Biomass Landfill gas Geothermal Low-impact hydro Clean technologies (e.g., fuel cells)

8. 36 MW Total = 112 megawatts (MW) The Group has completed 112 MW of green power projects and purchases Renewable energy certificates 35 19 16 6 Hydrogen fuel cells Wind power Landfill gas Other renewable power As of December 2003

9. US green power markets are growing MW installed capacity Source: U.S. Department of Energy (Wind Energy Program) & AWEA (2004). Available at: www.awea.org/faq/instcap.html; IEA Photovoltaic Power Systems Programme (2003). Available at: http://www.oja-services.nl/iea-pvps/isr/22.htm; Solarbuzz “Annual World Solar Photovoltaic Market 2003 Report” (2004). Available at: http://www.solarbuzz.com/Marketbuzz2004-intro.htm Wind Solar 16% CAGR 19% CAGR

10. However, green power markets for corporate energy users face several challenges Large up-front capital expenditures for on-site systems High cost per kilowatt-hour Lack of availability in some regions

11. Claire Broido Vince Van Son Mark Buckley Today’s speakers will share new business models & products that address these challenges