Global Warming

Carbon

Clinton Climate Initiative (CCI)

Government (1) + Business (1) = 3

Setting the Stage for the “Perfect Storm”

• Energy Consumption

• China, India

• Energy Cost

• Greenhouse Gas Emissions

• Global Warming

Quality of Our Lives Today, Our Children Tomorrow

The Case for Change…….

We Know What We Need to Do…..

Abatement cost <$50/ton

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CostReal 2005 dollars per ton CO2e

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Residential electronics

Commercial electronics

Residential buildings – Lighting

Commercial buildings – LED lighting

Fuel economy packages – Cars

Commercial buildings – CFL lighting

Cellulosicbiofuels

Industry – Combined heat and power

Existing power plant conversion efficiency improvements

Conservation tillage

Fuel economy packages – Light trucks

Commercial buildings – Combined heat and power

Coal mining – Methane mgmt

Commercial buildings – Control systems

Distributed solar PV

Residential buildings – Shell retrofits

Nuclear new-build

Natural gas and petroleum systems management

Active forest management

Afforestation of pastureland

Reforestation

Winter cover crops

Onshore wind – Medium penetration

Coal power plants – CCS new builds with EOR

Biomass power – Cofiring

Onshore wind – High penetration

Industry – CCS new builds on carbon-intensive processes

Coal power plants – CCS new builds

Coal power plants – CCS rebuilds

Coal-to-gas shift – dispatch of existing plants

Car hybridi-zation

Commercial buildings – HVAC equipment efficiency

Solar CSP

Residential buildings – HVAC equipment efficiency

Industrial process improvements

Residential water heaters

Manufacturing – HFCs mgmt

Residential buildings – New shell improvements

Coal power plants– CCS rebuilds with EOR

Potential Gigatons/year

Commercial buildings – New shell improvements

Afforestation of cropland

Onshore wind – Low penetration

Reduce 2030 emissions by 2.9 Gigatons cost <$50/ton

Source: McKinsey; “Reducing US Greenhouse Gas Emissions: How much at What cost?”

We Have Options.… McKinsey mid-range curve

Abatement legislation already identified Source: McKinsey; “Reducing US Greenhouse Gas Emissions: How much at What cost?”

Policy, Will, Affordability……..

Policy, Legislation, Business, ……A winning combination

• Energy Conservation

- ESPC Legislation

- Procurement Policies

• Renewable Energy

- Germany, Spain, CA

- U.S. Solar ITC’s

Net 1990 to 2000 ESPC benefits estimated at $1.6B*

• Energy Conservation

- Funding Options

- Performance Risk

• Renewable Energy

- New product development

- Ramped Capability

Political Victories Business Victories

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Source: LBL 2005 ESCO Review

The Clinton Climate Initiative (BRP)

• Building Retrofit Program (BRP) launched May 2007 in NYC- Buildings account for 70% of cities emissions

• Utilize Performance Contracting

- Similar to US DOE standard ESPC

- Proven, self regulating process

- Aligns interests of all parties

• CCI Customers:

• Energy Service Companies (ESCO’s) as Architects/Design Engineers/General Contractors/Performance Guarantors

Where Politics and Business Work!

1. Capital Access

2. Deployment Investment

3. Low Cost Renewable Energy

4. Higher Risk Thresholds

5. Realistic ROI expectations

1. Expand ESPC legislation

2. Long Term Tax incentives

3. Legislation Sunsets

4. Mandate agency targets

5. Accountability

6. Uniform energy efficiency

building codes

Political Business

Our challenge…Think Big…. Act Now!

“The time to repair the roof is when the sun is shining” - JFK

Thank you!