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Benefits of Cutting Emissions
By Michael Northrop
Washington Post
Monday, February 28, 2005; Page A17
Even as the Kyoto climate protocol becomes a binding international treaty, an
astonishing number of otherwise savvy policymakers continue to think that
incentives and programs to cut greenhouse gas emissions will cost too much,
hamper competition and stifle economic growth. While such reasoning has kept
the United States from mounting any serious response to global warming, others
have not waited for political leadership to point the way. In fact, businesses and
several governments have moved ahead, often aggressively, to constrain carbon
dioxide releases, mostly by using energy more efficiently. In doing so, they are
reaping enhanced profitability and robust growth.
For example, six companies -- IBM, DuPont, BT (British Telecom), Alcan,
NorskeCanada and Bayer -- have each reduced emissions by at least 60 percent
since the early 1990s, collectively saving more than $4 billion in the process.
Numerous other smart companies, such as Alcoa, 3M, Kodak, United
Technologies, Lafarge, Shell and BP, have also far exceeded the smaller
reductions envisaged under Kyoto and have saved large sums by using energy
more efficiently.
National economies are enjoying the benefits of reduced carbon emissions as
well. British Prime Minister Tony Blair recently told the Economist that between
1990 and 2002 Britain trimmed emissions 15 percent, while boosting its economy
36 percent.
International corporations were among the earliest leaders in reduction efforts.
DuPont, for example, began an ambitious carbon dioxide and energy reduction
program 10 years ago that today has brought greenhouse gas emissions down
70 percent; in the same period, production increased almost 30 percent.
These carbon-reduction and energy-efficiency measures have produced
significant financial benefits for DuPont. In addition to cumulative energy savings
of more than $2 billion, renewable energy saves $10 million annually over fossil
fuels. DuPont also hopes to realize $40 million in coming years from trading
carbon emissions credits. To underscore its commitment to this new commodities
market, the company became a charter member of the Chicago Climate
Exchange, a pilot program for greenhouse gas emission reduction and trading.
France-based Lafarge, the world's largest cement manufacturer, typically
produced over 80 million tons of CO 2 a year before setting a reduction target of
20 percent by 2010. (By comparison, all of Switzerland produced 45 million
metric tons of carbon equivalent in 1995.) Through manufacturing modifications,
however, Lafarge has lowered emissions of greenhouse gases nearly 11 percent
from 1990 levels. At the same time, Lafarge is realizing significant cost savings
and strengthening its future competitiveness. This company's example has led to
a working group of the world's leading cement manufacturers intent on curbing
emissions from one of the biggest sources of CO 2 .
Among national examples of carbon dioxide reduction, Britain is one of the best.
In addition to cutting its greenhouse gas emissions from 1990 levels, it aims to
produce 10 percent of its energy needs from renewable sources, primarily wind,
by 2010. And it hopes to raise this to 20 percent by 2020. The cost of this
transition has been insignificant.
Britain's lowered emissions and improved economic growth can be attributed in
part to an impressive decrease of 42 percent in CO 2 emissions intensity -- the
amount of fossil fuel energy required per unit of gross domestic product. By 2050
Britain projects a 60 percent reduction in CO 2 emissions at an annual cost of
only 0.01 percent of GDP growth. During the same period, officials expect
national wealth to triple.
Cities are also finding ways to lower emissions and save money. Toronto has
decreased greenhouse gas releases from municipal facilities by 40 percent and
is saving $2.7 million annually through energy efficiency improvements. In
addition, the city earns $1.5 million annually by selling electricity generated from
methane gas captured at three municipal landfills.
These businesses and governments are only a handful of the entities that have
realized impressive benefits from initiatives to curb carbon dioxide emissions.
Hundreds of companies and national and local governments have to various
degrees begun to see similar results from their efforts.
Such impressive results, though, are not enough. Only serious, across-the-board
federal and international policies and programs will solve the problem of global
warming. Unfortunately, concerted action is unlikely to occur as long as
administration officials and some members of Congress continue to use worn-out
arguments against limiting carbon dioxide releases, even as hundreds of
multinational corporations and smaller businesses are proving them wrong.
Meanwhile, these individual initiatives offer valuable insights and lessons for the
path ahead.
The writer directs the global sustainable development grant-making program at
the Rockefeller Brothers Fund.