Pressroom

Reports Highlight Urgent Environmental Risks Facing Investors, Companies in Emerging Asia

Paul Mackie — Thu, 25 Jun 2009 11:52:22 -0400

Environmental risks and opportunities that are overlooked by investors and companies will impact the financial performance of companies in India, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.

These are among the findings from two new reports by the World Resources Institute (WRI) and the International Finance Corporation.

The reports - Emerging Risk: Impacts of Key Environmental Trends in Emerging Asia and Undisclosed Risk: Corporate Environmental and Social Reporting in Emerging Asia - are being released at a critical time.

Until recently, these Asian markets have focused largely on environment-related reputational risk. But the report additionally highlights the operational, regulatory, and legal dimensions of environmental risks already flowing through companies’ value chains. For example, recent flooding affected companies in Indonesia significantly. Two major floods translated into real impacts on the population and on the country’s largest companies, resulting in declining stock prices and severe infrastructure degradation.

Euan Marshall, program manager of IFC’s Sustainable Investing unit, said, “The global financial crisis is causing companies and investors to reconsider the question, ‘What is risk?’ The investment community has begun to value companies based on how they respond to climate change risks. However, more needs to be done, and companies and investors need to understand the relevance of environmental risk in the context of aggregate financial risk.”

Dana Krechowicz, lead author of the reports and an associate at WRI, added, “Scarcity of water and climate change, among other risks, have and will increasingly affect the region. Economic impacts will be magnified if companies and investors are not well prepared.”

The two reports set the stage for a series of sector-specific reports to be published later this year by IFC, WRI, and HSBC that will identify material environmental risks and opportunities in the region’s food and beverage, real estate, and power generation sectors.

The series of reports are being completed in partnership with the Japanese government.

Short- and Long-Term Business Impacts of Environmental Trends in South Asia

WRI Strongly Supports Passage of Climate and Energy Bill

Paul Mackie — Wed, 24 Jun 2009 11:15:24 -0400

The World Resources Institute (WRI) strongly supports passage of the American Clean Energy and Security Act of 2009, which is expected to reach a floor vote in the U.S. House of Representatives this week.

Jonathan Lash“Action is vital. Our current economic and energy systems are altering the global climate at an accelerating and dangerous rate,” said WRI President Jonathan Lash.

“The United States is home to the most entrepreneurial and innovative private sector in the world. By setting a price on greenhouse gas emissions, the bill provides a long-term roadmap for carbon reductions by sending a message to businesses and investors that there will be markets for low-carbon products and services. We cannot develop needed technology without this signal.

“This legislation offers a new economic platform on which Americans can work, compete and prosper. The international community awaits U.S. leadership. The GHG targets and additional provisions in this bill are a critical first step by the United States.”

WRI has a range of climate experts, available to speak to the media, who are researching different aspects of the bill. John Larsen and Robert Heilmayr can speak about the bill in general and have produced charts and analyses. Alexia Kelly is available for interviews regarding carbon offsets.

Some of the most encouraging aspects of the bill include:

Reduction targets for more than 85 percent of the U.S. economy to reduce the country’s emissions 15 percent from 2005 levels by 2020, and 73 percent by 2050
Between 2012 and 2025, approximately 75 percent of allowance value is directed to aid consumers or for other public benefits such as energy efficiency
Funding is provided (3 percent in 2012, ramping up to 12 percent in 2027) for domestic and international adaptation. This funding is critical - especially for geographic areas threatened with climate impacts - and will help secure a global climate agreement in Copenhagen in December 2009
Funding (between 3 percent and 6 percent of allowance value over the life of the program) to develop low-carbon technologies and transform the auto sector

Lash added, “There are components of this bill that we feel need to be strengthened, and WRI looks forward to working with Congress - as a founding member of the U.S. Climate Action Partnership - to make improvements as the legislative process progresses.

“I applaud Speaker Pelosi, Leader Hoyer, Chairmen Waxman and Markey, and the many other clean energy and climate champions in the House of Representatives for their leadership. The clean energy economy envisioned in this bill will benefit Americans, and will help the United States live up to the commitment President George H. W. Bush made in Rio in 1992 to protect the climate.”

Smart Policies Can Cut Emissions by Delivering 24/7 Solar Energy

Jessica Forres — Wed, 17 Jun 2009 10:10:25 -0400

Concentrating solar thermal (CST), a renewable energy technology that can provide electricity around-the-clock, has the potential to replace traditional fossil fuel-based power sources and become a central part of the U.S. power supply.

“Now, while Congress works on climate and energy legislation, is a good time to focus on CST and what is needed to fully realize the potential of this attractive renewable energy option,” said Britt Staley, the lead author of a new report by the World Resources Institute (WRI). “State and federal support for developing renewable energy sources and increased federal oversight of the transmission grid are needed.”

The authors of Juice from Concentrate argue that CST is different from many renewable energy technologies that provide power intermittently. When combined with thermal storage, CST can generate electricity on demand, not just when the sun is shining. It can also be integrated with other kinds of backup power.

Electricity from other renewable sources can be stored in batteries, but these are inefficient and expensive. CST power can be stored as heat in tanks - like coffee in a thermos - and used to produce electricity when needed. CST’s ability to provide electricity on demand and around-the-clock could enable utilities to meet baseload power instead of relying on coal-fired power plants.

If CST displaced new coal plants built in the United States today until 2030, carbon dioxide emissions could be reduced by 5 billion tons cumulatively - offsetting the annual emissions from electricity consumption of 35 million homes over that period.

“Even though there are 9,000 megawatts on the drawing board worldwide, several barriers exist to solar thermal power development,” Staley said. “Up-front investment for CST is high compared to that associated with coal plants. Federal and state policy support can help bring down costs over time to make CST competitive with coal.”

For instance, a 30 percent Investment Tax Credit for CST projects constructed before 2017 has helped spur investment in the U.S. Generous feed-in-tariffs have supported development in Spain, where electric utilities are obligated to purchase solar thermal power at a fixed, above-wholesale price for the electricity.

Water usage is another barrier highlighted in the report. One CST plant uses roughly the same amount of water per kilowatt hour of output as a coal plant. This can create a problem in arid regions, such as the Southwest U.S., where solar conditions are favorable, but water resources are scarce.

“Alternative cooling systems are available and can reduce water requirements, but these systems can increase project costs,” Staley added. “Creating investment incentives for plants to incorporate these technologies will be important to the long-term sustainability of CST.”

Truly taking advantage of CST’s potential will mean building a more complete infrastructure to bring power from sunny deserts to urban centers. The authors suggest that greater federal oversight of the electricity grid and improved coordination between grid operators are necessary.

The map illustrates the regions with good solar potential for CST development.

Asian Development Bank Must Improve Climate, Energy Lending Policies

Paul Mackie — Fri, 12 Jun 2009 13:48:05 -0400

As the Asia Clean Energy Forum kicks off next week, the Asian Development Bank and other multilateral development banks should do more to integrate climate change and clean energy considerations as a core part of their development assistance.

“As a major development institution, the Asian Development Bank has a critical role to play in channeling support towards low-carbon development and increasing protection from climate-related disasters in developing Asian countries,” said Maria Athena Ballesteros, a senior associate at the World Resources Institute (WRI), who will speak on a panel June 18 entitled “Finance Solutions for Clean Energy.”

“WRI’s independent analyses show that more than 60 percent of all development-bank financing for the energy sector over the past five years has not considered climate change at all. This needs to vastly improve.”

“The Asia Pacific region is facing serious challenges with threats from global climate change, the worsening financial crisis, and soaring food and fuel prices,” Ballesteros added. “The ADB and other development banks are in a position - and have the economic and moral responsibilities - to improve energy security, public health, and climate resilience. This can be accomplished through implementing policies to deliver electricity through a safe, affordable, and reliable infrastructure.”

More than 700 attendees are expected for the forum, which runs through next Friday. The forum highlights best practices in policy and finance and seeks to inspire actions that respond to Asia’s climate, access, and energy-security challenges.

Report: Beijing’s Water and Waste Performance at Olympics Earns Gold

Paul Mackie — Tue, 09 Jun 2009 12:23:41 -0400

Beijing achieved and largely exceeded the drinking water and waste-management goals it set as part of its bid for last summer’s Olympics, according to a new report.

“Beijing prepared impressively in these areas for the Olympic games. In the end, the city improved its drinking water, as well as its waste-disposal and recycling systems,” said Cy Jones, a senior associate at the World Resources Institute (WRI) and lead author of two chapters within the report, which was produced by the United Nations Environment Programme (UNEP) in collaboration with several partners.

WRI’s research - covering the water and waste chapters - found that the city’s drinking water treatment plants met China’s new water quality standards and guidelines set by the World Health Organization. Beijing also expanded its wastewater collection and treatment systems, enabling the city to treat 92 percent of its wastewater during the games.

“Though many more actions are needed to ensure the long-term sustainability of its water supply, Beijing’s aggressive efforts before the Olympics show that it’s possible for cities to minimize water consumption, maximize the use of available rainwater and treated wastewater, and protect critical surface-water resources,” Jones added. “Beijing’s efforts and our recommendations can act as a guide for future Olympic host cities.”

In addition to improving water quality, Beijing surpassed its goal of sorting 50 percent and recycling 30 percent of all solid waste produced within the city by 2008. Upgrades to the city’s waste disposal system allowed 52 percent of waste to be sorted and 35 percent to be recycled by 2007.

Further, Beijing greatly expanded its ability to properly dispose of hazardous waste in specially designated landfills. In 2001, four plants could properly dispose of 2,000 tons of hazardous waste per day combined. In 2008, the city increased that capacity to 30,000 tons and recycled an additional 10,000 tons.

“A big step-forward has been made by the Beijing municipality in terms of waste disposal and recycling,” said Hanqian Zhang, a WRI researcher and report co-author based in Beijing. “Olympic bid commitments were achieved through effective infrastructure investment, wise urban planning, technology research, and education programs.”

The authors found that Beijing’s water management leading up to the Olympic Games serves as an example to other cities of how to achieve maximum efficiency in the use and management of scarce water resources. Beijing should continue its efforts. Further, the International Olympic Committee should promote the development and implementation of environmentally sound water and waste management in all cities being considered for future games.

The report, Independent Environmental Assessment: Beijing 2008 Olympics Games, was produced by UNEP. Data was provided by the Beijing Municipal Government, the Beijing Environmental Protection Bureau, and the Beijing Olympic Organizing Committee. WRI provided expertise and analysis on both the water quality and solid waste chapters.

Energy, Environmental Considerations Could Be Included in Transportation Bill for First Time

Paul Mackie — Tue, 09 Jun 2009 09:30:00 -0400

NTPP Member and WRI Transport Director Nancy Kete Comments on Today’s Announcement

The National Transportation Policy Project (NTPP), a project of the Bipartisan Policy Center (BPC), released its final report to the Obama administration and Congress here this morning.

The recommendations are intended to create a thorough framework within the reauthorization of the transportation bill, which expires September 30. The NTPP calls for U.S. transportation funding to directly serve five clear goals: economic growth, connectivity, metropolitan access, energy and environment, and safety.

This goal and performance-driven system would replace the current programs that are not tied to any clear federal purpose and do not require transparency and accountability for how the federal transportation funds are spent.

In some sectors, a cap-and-trade system, like the one proposed in the current House climate bill (Waxman-Markey), will generate a sufficient push to achieve necessary emission reductions. But the transportation sector responds more slowly to price signals because changes necessary for emission reductions take a long time to implement. This conceptual chart shows how long it would take for different policies – if they were adopted now – to reduce emissions. All these policies will be needed if the country is to achieve emission reductions called for by U.S. and international climate experts.

Nancy Kete, director of EMBARQ - The World Resources Institute Center for Sustainable Transport, a non-profit organization that develops transport solutions for cities around the world, has been one of the NTPP’s key members focused on the energy and environment goals.

“A transportation system that emits a full third of our greenhouse gases and is almost entirely dependent on oil is not sustainable from an economic, national security, or environmental perspective,” Kete said at a panel discussion this morning.

“I am pleased with how much the members have focused on ensuring that transportation policy is responsive to the 21st century challenges of energy security and climate change. We’re calling for a dramatic change in the way transportation investment decisions are made.

“A new bill must play a fundamental role in reducing greenhouse gases over the coming decades. Low-carbon fuels and the Obama administration’s decision to improve fuel economy standards will not be enough for us to reach our targets.”

Kete added, “States and localities will need to consider transportation-demand management measures. Congestion pricing, increasing the quality and supply of transit, and improving integrated transportation and land-use planning will help avoid GHG emissions in the future.

“The proposed new programs under the NTPP recommendations would allow states and localities full flexibility to meet national goals according to their needs and priorities. The accountability measures and incentive provisions will keep everyone on track towards cutting U.S. GHG emissions potentially required under the Waxman-Markey bill.”

Kete spoke on the panel discussion with fellow NTPP project member Douglas Holtz-Eakin, president of DHE Consulting, LLC and former Congressional Budget Office director. The panel followed a press conference and the keynote address from Senator Mark Warner (D-VA) here at the Washington Court Hotel.

The NTPP is chaired by former Mayor of Detroit Dennis Archer, former Congressman Sherwood Boehlert, former Senator Slade Gorton, and former Congressman Martin Sabo. NTPP is composed of a diverse and bipartisan group of transportation experts and business and civic leaders. The BPC acts as an incubator for policy efforts that engage top political figures, advocates, academics, and business leaders in the art of principled compromise.

WRI Applauds Midwestern Effort to Fight Climate Change

Jessica Forres — Mon, 08 Jun 2009 17:24:56 -0400

Climate experts at the World Resources Institute (WRI) applaud the six Midwestern governors and Manitoban premier who have released today recommendations for a regional cap-and-trade program to reduce greenhouse gas emissions.

U.S. State Climate Initiatives; MGGRA, RGGI, WCI“The Midwestern governors recognize the need to tackle climate change while simultaneously growing the economy,” said Franz Litz, senior fellow at WRI who advised the region. “In the absence of federal climate legislation, regional partnerships are vital to reducing greenhouse gas emissions, spurring energy innovations, and creating green jobs.”

Signed by the governors of Illinois, Iowa, Kansas, Michigan, Minnesota and Wisconsin and the premiere of Manitoba, Canada, the recommendations are the result of an 18-month process that began in 2007 when the governors formed the Midwestern Greenhouse Gas Reduction Accord.

Following other regional carbon-trading agreements in the western and northeastern U.S., this is the first to address the unique climate challenges faced in America’s heartland.

In the Northeast, the Regional Greenhouse Gas Initiative (RGGI) caps carbon-dioxide emissions from large electric utilities in 10 eastern states with a goal of reducing emissions by 10 percent by 2018. The Western Climate Initiative (WCI) is a cap-and-trade program covering various industries in seven western states and four Canadian provinces. WCI released its design last fall.

The Midwestern program’s design will focus on promoting carbon sequestration through good agricultural practices, investment in carbon capture and storage, and energy efficiency.

“If a cap-and-trade program can work for the midwestern, northeastern and western regions, it can also work for the entire country. These agreements should form the basis of a federal greenhouse gas emissions market under the Obama administration,” Litz said. “WRI’s climate policy experts will continue to work with both state governments and federal policy makers to develop a program design that works nationwide.”

The governors of Indiana, Ohio, South Dakota and the premier of Ontario will observe the recommendations for now.

MEDIA ADVISORY; Land Management for Corporations on Agenda at Upcoming Conference

Jessica Forres — Thu, 04 Jun 2009 13:29:13 -0400

WHAT:

Wildlife Habitat Council (WHC) and the World Resources Institute (WRI) will host the first annual Ecosystem Services on Corporate Lands conference. Representatives of government, industry, conservation, and community groups will host panel discussions and workshops. These will explore how companies can reduce their costs, generate new revenue, and improve their reputation by managing ecosystems on lands they own. Other areas of discussion will include ecosystem services markets - such as water quality trading - that companies can take part in and regulatory information on habitat management.

WHEN:

Thursday, June 11, 2009
8:00 a.m. to 8:30 p.m.

Friday, June 12, 2009
8:00 a.m. to 2:30 p.m.

WHERE:

Crowne Plaza Hotel
8777 Georgia Ave., Silver Spring, MD 20910
(Red line to Silver Spring Metro Stop)

WHO:

Lafarge North America, U.S. Department of Agriculture, World Business Council for Sustainable Development, Constellation Energy, Business and Biodiversity Offsets Program, Ducks Unlimited, U.S. Fish and Wildlife Service, Environmental Banc & Exchange, Exxon Mobil, Rio Tinto, ENTRIX Inc., NOAA, BP, Virginia Department of Forestry, US Forest Service, Defenders of Wildlife, Kinder Morgan, Inc.

RSVP:

Jessica Forres, WRI media officer, +1(202) 729-7736, jforres@wri.org

WRI Applauds Historic Step by the U.S. House of Representatives

Paul Mackie — Thu, 21 May 2009 20:11:42 -0400

Jonathan Lash, president of the World Resources Institute congratulates Chairman Henry Waxman (D-CA), Chairman Edward Markey (D-MA), and members of the U.S. House Energy and Commerce Committee on their historic vote this evening to approve The American Clean Energy and Security Act of 2009 (ACESA).

“With this bill, the committee has seized a triple opportunity: to combat climate change, to enhance our nation’s security, and to unleash American ingenuity for building the economy of tomorrow. ACESA will spur new markets for clean energy and technology and provides a clear and ambitious goal to reduce U.S. emissions 80 percent by 2050.

“As a founding member of the United States Climate Action Partnership, WRI welcomes this important first step in fulfilling the partnership’s goal of ‘prompt enactment of national legislation in the U.S. to slow, stop, and reverse the growth of greenhouse gas emissions over the shortest time reasonably achievable.’

“The bill provides new momentum for visits to China this weekend by both House Speaker Nancy Pelosi and Senate Foreign Relations Committee Chairman John Kerry to advance critically important discussions on links between our nations’ climate policies and strategies.

“This is a crucial first step in the U.S. legislative journey, and WRI will continue urgently to pursue the passage of environmentally protective, economically sustainable, and fair climate legislation. We look forward to working with Congress as the legislative process continues on this critical issue.”

Statement by Deborah Seligsohn on House Speaker Nancy Pelosi’s Strategically Important China Visit

Paul Mackie — Thu, 21 May 2009 09:28:46 -0400

National Journal reported that U.S. House of Representatives Speaker Nancy Pelosi (D-CA) is organizing a congressional trip to China over the Memorial Day recess, with a focus on climate change.

Deborah Seligsohn Deborah Seligsohn, principal advisor here in Beijing to the World Resources Institute’s Climate and Energy Program, today issued the following statement:

“Speaker Pelosi is visiting China at an opportune moment. Confidential, high-level meetings over the past six months can be advanced by the speaker’s personal focus on cooperation between the U.S. and China on climate and energy. Her visit comes on the heels of the Waxman-Markey Bill debate, which is being closely watched as a signal that the U.S. may enact domestic policy and pave the way for an international climate agreement.

“The Chinese emit less than a quarter of the amount of greenhouse gases per capita that Americans do. They have a number of impressive climate and energy practices in place. There is a lot that can be shared with Speaker Pelosi on China’s efforts to tackle its energy and climate challenges.

&quot;China faces real challenges from the impacts of climate change itself, including the increased risk of droughts and floods and the loss of coastal areas. This visit offers an opportunity to discuss with the Chinese government, businesses, academics, NGOs and others how to expand U.S.-China cooperation.  Chinese scholars played a major role in the last <a href="http://news.bbc.co.uk/2/hi/science/nature/6324029.stm">global assessment</a> of climate change, and the Chinese are moving rapidly in many climate-friendly technologies, including wind, solar, electric cars and carbon capture and storage. All of these areas would benefit from <a href="http://www.asiasociety.org/taskforces/climateroadmap/">closer collaboration</a> and sharing of knowledge, best practices and joint financing of new research and development between the two countries.&quot;