ama green marketing in the new administration
TRANSCRIPT
American Marketing Association
June 30, 2009
Discovering the Value of Green Marketing for B2B: Green and the New Administration
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Summary Marketing Impacts
• The Administration wants to:– Reduce environmental impacts from energy use
– Lower energy costs
– Use alternative energy
– Create green jobs
• B2B will have incentives to reduce and shift primarily through state, county, and city funds
• Public and governmental pressure to act more “green” will increase, but likely paced due to high costs
• Focus communications on what company has done to reduce energy consumption that will lower cost for them and ultimate consumer
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Even in Democrat-Controlled Government, “Green” only 8% of the Stimulus - $60B
• Tax Cuts, State Funds, Relief (Jobs and Bailouts), Infrastructure, then “Green”
• Behind “Green” is College, Job Training, and Research
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70% of $60B going to Energy Efficiency Efforts in Business & Low-Income
37%
32%
18%
13%
Energy Efficiency $59.5B
Federal Energy-Efficiency Grants Other Energy-Efficiency Grants Smart Electric Grid Renewable Energy Loan Guarantees
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H.R. 2454: The American Clean Energy and Security Act of 2009
• Sponsored by House Members:– Henry Waxman, California (D)– Edward Markey, Massachusetts (D)
• Voted out of committee on May 21, 2009• Pending votes in House & Senate• Signature expected by President in Fall• Contains 4 Titles:
– I – Clean Energy– II – Energy Efficiency– III – Reducing Global Warming Pollution– IV – Transitioning to a Clean Energy Economy
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Clean Energy (Title I) is about technologies to reduce carbon footprint; but these are costly
• Investments in Clean Coal Technology, Electric Vehicles, Smart Grid (power), EnergyStar Appliances, and Clean Energy Innovation Centers
• Cap & Trade system on Carbon Emissions
• Marketing Impacts
– Rising costs for suppliers
– Expedited promotion of “clean” as a way to reduce carbon footprint
– Energy conservation with Smart Grids and Appliances
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Energy Efficiency (Title II) can reduce costs through DOE grants/incentives
• Business to benefit most from Title II
• Lighting, appliances, and prep equipment, transportation, & industrial
• Grants for efficiency/renewable programs to Non-profit, City/County, and Low-income organizations
• Marketing Impacts
– Cost-savings can be significant
– ROI payout needs to be reasonable
– Lodi Winery earns $1MM in rebates (chillers, insulation, fermentation, and storage)
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Reducing Global Warming Pollution (Title III) will regulate and provide targets
• Business leaders involved in heavy industry, deforestation, & energy commodities (derivatives) will be under intense pressure to reduce
• Reductions in plan:
– 3% below 2005 by 2012
– Up to 83% below 2005 by 2050
• Marketing Impacts
– Public pressure
– Public Relations
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Transitioning to a Clean Energy Economy (Title IV) provides Assistance to Change
• Rebates for energy-intensive Industrial Sector (iron, steel, alum, cement, glass, pulp, paper, chemicals, ceramics)
• “Complicated” calculations for petroleum refineries
• Green jobs and training (cars & power)• Energy tax credit for low-income• U.S. private technology assistance and
community efforts in developing countries• Marketing Impacts
– Enhance communications around energy use and new technologies
– Demonstrate green job or assistance in developing countries
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Summary Marketing Impacts
• The Administration wants to:– Reduce environmental impacts from energy use
– Lower energy costs
– Use alternative energy
– Create green jobs
• B2B will have incentives to reduce and shift primarily through state, county, and city funds
• Public and governmental pressure to act more “green” will increase, but likely paced due to high costs
• Focus communications on what company has done to reduce energy consumption that will lower cost for them and ultimate consumer
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Sources
• “H.R. 2454: The American Clean Energy Act of 2009: Short Summary,” Edison Electric Institute, May 18, 2009
• “Obama’s $787 billion Economic Stimulus Plan Mapped Out,” Financial INFOgraphics, June 2009
• “Incentives for Going Green,” Wines & Vines, June 2009
• “Overview and Impact of ARRA on Construction Spending,” Trane
• www.energy.gov
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