Effective Strategies for Climate Risk Mitigation

Tom KerrUS EPA

Overview

Background

Climate Leaders and corporate GHG management

ENERGY STAR and corporate energy management

Clean energy investment

EPA’s Climate Partnerships

Widespread partnerships 7,000+ partners across industry, service sector, public sector cover all major emissions sources

Achieving real results 66 MMTCE reductions in 2001 alone >500 MMTCE locked in through 2012

Spurring investment in cost-effective technologies

Delivering value-added tools & services Climate Leaders GHG Inventory Management Plan ENERGY STAR corporate Energy Management Plan Clean energy project assistance

Voluntary Climate Risk Mitigation – Drivers for Action

Cost savings Influence policy development Pressure from financial sector Public recognition Brand enhancement Competitive advantage Pressure from environmental groups CEO believes it is the right thing to do

Corporate GHG Management

Develop a comprehensive climate change strategy Perform corporate-wide GHG inventory

Set corporate-wide GHG emissions reduction goals

Identify low-cost mitigation options

Ensure credibility Partner with states, federal government, NGOs

Develop an Inventory Management Plan that demonstrates a sound process is in place

Reevaluate progress periodically and publish results

Corporate Energy Management

What - Manage reductions in energy use across all facilities Key Activities

Establishing organizational commitment Measuring energy performance Creating and implementing action plans & projects Monitoring responsibility for energy use Evaluation and focus on continuous improvement Ensuring energy efficiency procurement, design, and

operations

Why – Companies with strong programs can reduce energy use (and GHG emissions) by 10-30%

California Corporate Leaders

CalSTERS – GreenWave Program for Real Estate Require all real estate holdings to be benchmarked and

tracked using the EPA’s (ENERGY STAR) National Performance Rating System for buildings

Holdings scoring a 75% must implement an energy reduction action plan that draws from ENERGY STAR guidance

California Portland Cement Established corporate energy program based on the ENERGY

STAR approach Participating in ENERGY STAR Cement Industry Focus to create

a plant Energy Performance Indicator (EPI) to benchmark cement plant energy efficiency

Saved an estimated 138,135,996 kBtu in 2004

Energy Management – Policy Considerations

Whole Building Energy Performance Measure efficiency using normalized metrics of total

energy intensity Incorporate whole building comparative energy

benchmarking Promote a whole building, sequenced approach for facility

upgrades to avoid equipment oversizing Tie benchmarking to rebate programs Reward buildings with improved benchmark scores

Improved Operational Approaches Support building operator training Orient audit and other programs to address operational

and management options – often no cost/low cost Integrate whole building energy

performance into new construction

Clean Energy Investment

Combined Heat and Power Dramatically more efficient/less polluting Enhanced reliability/control over energy use Reduced gas use Explore ‘waste/opportunity’ fuels

Green Power Purchasing Electricity use often largest source of emissions Green power available nationally New products offer gas price hedge Need to negotiate with providers for best deal

Getting Started With GHG Management

EPA’s Climate Leaders Offers Credibility through EPA review of inventory Technical inventorying assistance,

including assistance with an Inventory Management Plan

Coordination with other climate efforts State (CA CCAR), international, federal

Peer exchange Partners demonstrate leadership by

developing comprehensive climate change strategies

Currently 67 partners; 28 have set GHG targets

Getting Started With Energy Management

ENERGY STAR Can Help With: Establishing an Organizational

Commitment Measuring Energy Performance

benchmarking facilities with Portfolio Manager

Demonstrating Financial Value earning/share, asset value, NOI

Recognition for Leadership ENERGY STAR label calculation of environmental benefits of energy

savings

Getting Started With Clean Energy Investment

EPA’s CHP Partnership offers Feasibility assessments Referrals to developers/equipment suppliers Technology and market analyses Recognition for leadership Calculation of environmental benefits

EPA’s Green Power Partnership offers Easy-to-use Procurement Guide Referrals to providers Calculation of environmental benefits Recognition for leadership

Contact Information

Tom KerrEPA Office of Air & Radiation

tel. 202/343-9003email kerr.tom@epa.gov

www.epa.gov/climateleaderswww.energystar.gov

www.epa.gov/cleanenergy