climate vision, power partners sm , & ghg activities for public power
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Climate Vision, Power Partners SM , & GHG Activities for Public Power. Daniel E. Klein Twenty-First Strategies, LLC McLean, VA 22101 [email protected]. March 2005. What we’ll cover today. Background on U.S. GHG efforts Climate Vision Power Partners SM Company actions - PowerPoint PPT PresentationTRANSCRIPT
Climate Vision, Power PartnersSM,& GHG Activities for Public Power
March 2005
Daniel E. KleinTwenty-First Strategies, LLC
McLean, VA 22101
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What we’ll cover today
Background on U.S. GHG efforts
Climate Vision
Power PartnersSM
Company actions
GHG accounting & Upcoming activities
What’s a Power PartnerSM to do?
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Technological Carbon Management Options
All options needed to: Maintain economic growth Affordably meet energy demand Address environmental objectives
ImproveEfficiency
Demand SideSupply Side
RenewablesNuclearFuel Switching
Reduce CarbonIntensity
Carbon emissions = $GDP X Btu/$GDP X carbon/Btu – sequestration
SequesterCarbon
Capture & StoreEnhance Natural
Sinks
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Improving GHG intensity is a key component of the U.S. strategy
Over time, improving GHG intensity will:
1. Slow the rate of GHG growth
2. Stabilize GHG emissions
3. Reduce absolute emissions
time
emis
sio
ns
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Addressing Climate and Energy Securityin the Global Climate Change Initiative
On February 14, 2002, President Bush set a goal to reduce U.S. GHG emissions intensity by 2012
“My administration is committed to cutting our nation’s greenhouse gas intensity ... by 18 percent over the next 10 years.”
GHG “intensity” will be measured in terms of GHG per unit of GDP
This goal is equivalent to ~500 million metric tons of cumulative carbon equivalent reductions from 2002 - 2012
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Administration Launched Several Initiatives
Multi-sector voluntary programs
Transformational technology RD&D efforts on renewables, clean energy
Expansion of global outreach and partnerships
Support for green trading
Exploration of innovative policy instruments
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Advancing R&D via partnershipsPower and petroleum: participating in FutureGen, an
emissions-free coal-fired powerplantPower and petroleum: participating in carbon
sequestration R&D projectsForest & paper industry: working with DOE on
biomass gasification; industry initiating pilot projectsAuto and petroleum: participating in FreedomCAR and
Hydrogen Fuel Initiative Iron & steel: issued R&D solicitation and selected 7
“post-Kyoto” R&D concepts (total value: $2.5 million). AISI member companies will cost share
Chemicals: initiated Vision2020 Innovative Energy Systems Challenge; partnering with DOE
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Climate Vision Program Launch
Climate VISION – Voluntary Innovative Sector Initiatives: Opportunities Now
A part of GCCI, launched February 12, 2003
Part of a continuum of short- mid-, and long-term approaches to address climate change
Nature of problem requires development and use of transformational technologies
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Climate VISION Private-Sector Partners
Alliance of Automobile Manufacturers
Aluminum Association
American Chemistry Council
American Forest & Paper Association
American Iron & Steel Institute
American Petroleum Institute
Association of AmericanRailroads
The BusinessRoundtable
International Magnesium Association
National MiningAssociation
Portland CementAssociation
Power Partners
Semiconductor Industry Association
Each partner has committed to contribute to President’s GHG intensity goal.
Each partner has committed to contribute to President’s GHG intensity goal.
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Elements of Voluntary ProgramsCommitments: Industries make meaningful
commitments toward 18% intensity reduction goal and to report emissions in §1605(b)
Inventory: Partners develop and use tools to calculate, inventory, and report GHG emission reductions, avoidance, & sequestration
Solutions: Partners (industry, government) identify cost-effective GHG reductions for implementation
Technology: Companies develop strategies to speed R&D and commercial adoption of advanced technologies
Recognition: Government recognizes voluntary mitigation actions
Further reductions: Partners develop strategies across the economy to further reduce GHG emissions
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Climate VISION Website
Announced during COP-9 in December 2003 & received very positive reception
Provides resource for partners and an avenue to communicate with public on progress
Averaging 10,000+ “hits” per month
www.climatevision.gov
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So … how is the U.S. doing so far? Goal: 18% reduction in GHG intensity, 2002-12
18% implies average annual rate of ~1.7%/year But BAU forecasts show ~14% improvement (~1.3%/year) From 1990-2003, GHG intensity fell ~1.9%/year
First year: 2003 relative to 2002 (EIA data) GHG emissions increased 0.7 percent But $GDP grew 3.0 percent So, GHG intensity fell 2.3 percent
Second year: 2004 relative to 2003 (very prel.) GHG emissions increased ~1.4 percent But $GDP grew ~4.4 percent So, GHG intensity fell ~3.0 percent
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Power PartnersPower PartnersSMSM: : Meeting the Challenge
U.S. electric power sector recognized early on as a world leader in voluntary approaches for reducing, avoiding or sequestering GHG emissions
Power industry came together in the 1990sSuccessfully undertook voluntary climate initiatives
through the Climate Challenge programFirst major industry to do so281 MMT CO2 of reported reductions in 2002.
But … does this reputation for “early action” still hold?
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Power PartnersPower PartnersSMSM: : Meeting the Challenge
In 2002, electric power sector created Power PartnersSM
Voluntary partnership with Federal government Address the President’s voluntary climate initiative Designed to deliver results in short, medium and
long term
Participating in Climate VISION & Climate Leaders
Industries/companies commit to reduce GHG intensity
Power sector: Equivalent of 3-5% reduction in emissions intensity (CO2/MWh) by 2012
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Power PartnersPower PartnersSMSM Participants
American Public Power Association (APPA)
Edison Electric Institute (EEI)
Electric Power Supply Association (EPSA)
Large Public Power Council (LPPC)
National Rural Electric Cooperative Association (NRECA)
Nuclear Energy Institute (NEI)
Tennessee Valley Authority (TVA)
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Power Sector Goal
Achieve equivalent of 3-5% reduction in GHG intensity by 2012 through credible, verifiable reductions in GHG emissions or offsetsCollaborative, industry-wide initiativesIndividual actions that best suit company capabilities,
resources and business strategiesCross-sector programs and outreach
Signed Umbrella MOU with DOEDecember 13, 2004Highlights roles of partners in achieving voluntary
reductions
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Power Industry Initiatives - UpdatePower Industry Initiatives - Update
PowerTree Carbon Co. – New reforestation effortSponsored by 25 U.S. power generatorsCommitted over $3 million for up to six projects – will
remove and store over 1.5 million tons of CO2
Program formally announced last year
C2P2 – Coal Combustion Products PartnershipIncrease CCP use from approx. 14 million tons to 20
million tons of CO2 annually by 2010Increase utilization rate from current 32% to 45% by
200840 utilities have become C2P2 “Champions”
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Power Industry Initiatives - UpdatePower Industry Initiatives - Update
IPP – International Power Partnerships programWork with DOE and State Dept. to identify GHG reduction
opportunities overseas Promote use of renewable energy and clean coal
technologies
Other EffortsPilot-Scale Test Centers for Engineering, Economic and
Environmental Evaluation of CO2 Capture and ContainmentCoal Fleet for Tomorrow
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Cross-Sector Programs & Outreach
Clean Coal TechnologiesIGCC – AEP, Cinergy, Southern, TECO,
FirstEnergyClean Coal Technologies ConferenceFutureGen
Geologic Carbon Sequestration: Regional PartnershipsCompanies teaming up with federal governmentDetermine most suitable technologies,
infrastructure needs
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Cross-Sector Programs & Outreach
Utility Hybrid Truck Initiative
Initiative for New Homes
Publish articles on ways to reduce energy
use, improve energy efficiency
Wise Use Website - help customers reduce
energy use
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So … how’s the Electric Power Sector doing so far?
Annual Intensity 1980 - 2025Year by Year Changes in Electric Power CO2 Intensity
0.54
0.56
0.58
0.60
0.62
0.64
0.66
0.68
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
mm
tCO
2e
/Bk
wh
Actual
Model
Note: 1981 through 2002 data from EGG 2003, 2003 data from Electric Power Annual 2003, 2004 to 2025 data from AEO 2005
Data compiled by EOP Group.
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So … how’s the Electric Power Sector doing so far?
Goal: 3-5% reduction in GHG intensity, 2002-2012 First year: 2003 relative to 2002 (EIA data)
CO2 emissions increased ~1.0 percent But generation grew only 0.6 percent So, CO2 intensity increased (worsened) ~0.4 percent
But are EIA’s 2003 estimates off? CO2 emissions increased ~1.8 percent, based on fuel
consumption So if generation grew only 0.6 percent Then GHG intensity increased (worsened) ~1.2 percent
How does 2004 look? (very preliminary) CO2 emissions increased ~1.0 percent, based on fuel
consumption Generation grew ~1.9 percent Then CO2 intensity declined (improved) ~0.9 percent
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Types of Actions for Electric Power CompaniesTypes of Actions for Electric Power Companies
Company-specific GHG Reduction Commitments
Renewable Energy & Green Power Programs
Sequestration Efforts
Other Efforts and Programs
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Company Actions - UpdateCompany Actions - Update
GHG Reduction CommitmentsAEP
Cinergy
FPL Group
PSEG
TECO
Green Mt. Power
Entergy
Xcel Energy
Austin Energy
SMUD
Seattle City Light
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Company Actions - UpdateCompany Actions - Update
Renewable Energy & Green Power ProgramsSolar
Arizona Public Service, Pugent SoundWind
FPL, Mid-American, Xcel Energy, ExelonBiomass
AEP, Cinergy, SouthernGreen Power/Pricing Programs
PacifiCorpPublic Power and Green Mountain Energy
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Company Actions - UpdateCompany Actions - Update
Sequestration Efforts
APPA TREE POWER Program
Southern Longleaf Legacy Program
Entergy’s Lower Mississippi River Valley Sequestration Project
PacifiCorp
AEP’s Geologic Sequestration Initiative with DOE
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Company Actions - Update
Other Efforts & Programs
Energy efficiency programs
SF6 Programs
Chicago Climate Exchange
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Upcoming Activities
Release of Revised §1605(b) Reporting
GuidelinesMay have impact on voluntary efforts
Complete Power PartnersPower PartnersSM Resource Guide Resource GuideHelp companies identify actions to reduce emissions
Continue and Expand GHG Reduction EffortsContinue and Expand GHG Reduction Efforts
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Release of Revised §1605(b)GHG Reporting Guidelines
Status of §1605(b) revisions Feb. 2002: GCCI to “Substantially Improve the Emission
Reduction Registry” November 26, 2003, DOE released proposed revised General
Guidelines Jan. 2004: DOE Public Workshop “Early 2005”: (1) further revision of the General Guidelines and
(2) proposed Technical Guidelines
Will §1605(b) help or hinder its purposes? Feb. 2002: “These improvements will enhance measurement
accuracy, reliability and verifiability, working with and taking into account emerging domestic and international approaches.”
But is the WRI/WBCSD GHG Protocol becoming the new standard?
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Complete the Power PartnersPower PartnersSM Resource Guide Resource Guide
http://carbonsequestration.us/PPRG/http://carbonsequestration.us/PPRG/
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Continue and Expand Power CompanyGHG Reduction Efforts
Understand your GHG footprint and risks Identify GHG reductions already under way Assess options for further GHG reductions
Costs Effectiveness Ancillary impacts
Set a GHG target? Absolute level of emissions? GHG emissions intensity?
Develop capabilities for GHG reporting
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Questions?
Dan Klein
Twenty-First Strategies, LLC
6595 Terri Knoll Ct.
McLean, VA 22101
703-893-8333