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Regional Climate Prosperity Framework February 21, 2009 Doug Henton & John Melville Collaborative Economics THE FRAMEWORK THE FRAMEWORK OUTCOMES – create and capture the benefits of climate prosperity DEMAND -- building the regional market for clean and green products and services SUPPLY -- growing the regional base of clean and green industries GLUE -- connects and aligns both demand and supply strategies, and tracks economic and environmental benefits OUTCOMES Create and Capture Benefits of Climate Prosperity REDUCE GREENHOUSE GAS EMISSIONS Total and per capita greenhouse gas emissions Share of lower-emission, renewable energy sources Energy productivity (energy use per GDP) Create and Capture Benefits of Climate Prosperity INCREASE ENERGY AND FINANCIAL SAVINGS Total and per capita energy consumption Total and per capita financial savings from energy efficiency improvements Create and Capture Benefits of Climate Prosperity EXPAND BUSINESS OPPORTUNITIES Increase in new companies Emergence of new industry sectors Growth of revenues and value-added or productivity of existing firms Growth in venture capital and other investment in green and clean companies Increase in green patents Create and Capture Benefits of Climate Prosperity GROW GREEN TALENT AND JOBS Number of new green jobs in emerging and established industry sectors Number of workers in education Training for green occupations DEMAND Build the Regional Market for Clean and Green Products and Services IMPROVE BUILDING EFFICIENCY Green building standards and programs for residential, commercial, industrial, and governmental structures Energy audits for buildings Energy efficiency efforts for buildings Build the Regional Market for Clean and Green Products and Services INCREASE COMMUNITY RESOURCE EFFICIENCY AND REUSE Efficient water use and reuse efforts Waste recycling and energy generation Improving the efficiency of community features, such as street lights Efficient land use strategies. Build the Regional Market for Clean and Green Products and Services GROW RENEWABLE ENERGY USE Financial incentives Regulatory streamlining and related efforts to promote rooftop solar systems Utility-scale shifts to renewable energy sources Build the Regional Market for Clean and Green Products and Services EXPAND CLEANER TRANSPORTATION OPTIONS Efforts to shift to alternative fuel vehicles and build alternative fuel infrastructure Expand and promote public transportation and other lower-emission options. Build the Regional Market for Clean and Green Products and Services TRANSFORM BUSINESS PRODUCTS AND PRACTICES Private sector efforts to move to new green product lines in established industries Shift to new materials and more efficient machinery (e.g., computers) Redesign production and other business processes. Build the Regional Market for Clean and Green Products and Services PROVIDE A NEW ENERGY INFRASTRUCTURE Build a “smart grid” Implement “smart metering” SUPPLY Grow the Regional Base of Clean and Green Industries ENCOURAGE GREEN INNOVATION Increase R&D investment Secure patents Provide access to testing facilities Facilitate commercialization Seed start-ups Make global linkages to help spur regional innovation Grow the Regional Base of Clean and Green Industries FACILITATE GREEN COMPANY EXPANSIONS Help individual firms with: Site location requirements (including land and facilities), Expansion financing Growth needs Grow the Regional Base of Clean and Green Industries BUILD THE GREEN VALUE CHAIN Broker linkages among: Green industry segments Buyers and suppliers in the region Regional firms and global partners Grow the Regional Base of Clean and Green Industries CREATE A PRO-GREEN REGULATORY CLIMATE Alignment of local standards, policies, and processes (like permitting and inspection) Removal of barriers Advocacy of state-level changes to encourage and expedite green economic development Grow the Regional Base of Clean and Green Industries EDUCATE AND TRAIN THE GREEN WORKFORCE Prepare new workers and retool existing workers at all levels for: New Green Jobs – – – – Solar installers Green product manufacturing technicians Sales Scientists Existing jobs that now require green skills – Electricians – Construction workers – Facility operations managers Grow the Regional Base of Clean and Green Industries PROMOTE REGIONAL PRODUCTS AND SERVICES Market products and services regionally and globally Promote a unique regional identity/niche in the global green economy. THE GLUE Implementing the Framework Regional Climate Prosperity Strategy can be developed by engaging all the key stakeholders in a collaborative process One outcome can be a Negotiated Green Investment Strategy Negotiated Green Investment Strategy Key Elements – Public-private- community engagement – Local-state-federal involvement – Recognizes fragmentation – Seeks a shared agenda – Requires negotiation and collaboration Elements of a Negotiated Green Investment Strategy Federal State Local Private Energy Efficiency Tax credits Loans Building codes Energy audits Renewable Energy Loan guarantees Bonds Streamline permitting VC Investments Clean Transportation Fuel efficiency Standards Emission standards Procurement Infrastructure Energy Infrastructure Smart Grid Expedite Permitting Utility investments Regional Leadership is Required Green stimulus is coming States are organizing for green jobs Localities are looking for funding Private sector want markets Regions provide a focal point for stakeholders to come together around a strategy.