WWF Report – Rethinking Business
May 27, 2010
Just wanted to share a new report put out by the WWF (the Wildlife people – not the wrestlers!). “Rethink Business” looks at companies that are members of the WWF’s Climate Savers Program. The program, founded in 1999, comprises an impressive list of major international companies committed to reducing their total emissions through negotiated agreements with the WWF. To help the Climate Savers with their commitments, the WWF provides support, advice, evaluation and a lot of other assistance (as well as significant representational and branding benefits, which mean a lot coming from the WWF).
We, along with most of the people attending the report release last night, were surprised to hear that Coca-Cola Canada’s largest GHG emissions came not from its fleet of delivery trucks, but the ubiquitous bottle and can vending machines all over North America (and, according to Coca-Cola’s representative, that came as a surprise to the company as well!). This is the type of information that companies and large institutions need to be gathering in order to figure out where GHG reductions are best concentrated for maximum effect.
If you have a moment, check out this great report. It has a lot of interesting case studies that will help you make the case that reducing GHGs isn’t just good citizenship; it’s good business. Get the report here.
(and if you are wondering who gets to really call themselves “WWF” – check out this article)
Proposed American Power Act Released: Controversy over Kerry-Lieberman Bill Mounts
May 20, 2010
Senators Kerry and Lieberman, sponsors of the proposed American Power Act
On May 12th 2010, Senators Kerry and Lieberman introduced a major bill aimed at addressing energy and climate change in the United States. The Proposed American Power Act would introduce a limited cap and trade system as well as promote and regulate carbon pricing and carbon markets. It would also implement a number energy and jobs initiatives to move the United States towards a low-carbon economy. Although the bill is complex and far from perfect, it has widespread support from key environmental and business groups. Time will tell whether the bill’s promoters in the U.S. Senate can muster the votes needed to pass it.
A summary of the bill and the full text of the bill are available on Senator Kerry’s website.
Selected highlights of the Bill:
- Sets emissions reduction target of 7.75 percent reduction by 2013, 17 percent by 2020 and by 80 percent by 2050, from 2005 base year.
- Those emitting over 25,000 tons of greenhouse gas emissions annually would be subject to reduction requirements (focusing on 7,500 factories and power plants initially)
- Allowances would be auctioned and auctions restricted to entities with a compliance obligation and a limited number of “market makers”.
- Implements a number of restrictions regarding state action and trading, resulting in the eventual prohibition of state and regional trading systems and over the counter (OTC) trades of offset credits.
- Mandates the Environmental Protection Agency to mandate annual emissions allowances
- Establishes an independent Advisory Committee to provide scientific and technical advice on the establishment and implementation of offset project programs
- Specific consideration for agriculture offsets as well as fugitive emissions from coalmines, landfills, oil and gas distribution facilities, terrestrial sequestration including forestry
- Aims to set a predictable price on carbon by providing a price collar with an introductory floor price set at $12/tonne (increasing at 3% over inflation annually) and a ceiling of $25/tonne (increasing at 5% over inflation annually).
- It also proposals a strategic reserve to complement the hard price collar and ensure the availability of price-certain allowances in the event of unusually high carbon prices.
- It proposes a secondary carbon market open to all participants, but existing only on a cash-cleared basis. This market aims to be highly regulated, exclusively exchange traded and transparent.
The bill also includes provisions to incentivize efficient use of fuel resources and new investments in sustainable infrastructure. In light of the controversy over the gulf oil-spill it is interesting to note that state revenue sharing provisions related to off-shore drilling remain in the proposed bill, however, coastal states have the ability to opt-out of off-shore oil drilling up to 75 miles from shore and states vulnerable to accidents can veto drilling plans.
The use of international emissions reductions is contemplated. The bill would establish advisory bodies to advise on related scientific, technical and political issues. It also supports research support for developing technology such as biochar and carbon capture and sequestration.
At almost 1000 pages of proposed legislation on a very “hot” topic, this bill promises to be controversial and potentially monumental for America and the world.
Future Bright for Rooftop Solar in Ontario
May 17, 2010
Partners in Project Green commissioned Zizzo Allan Climate Law LLP to study barriers to implementing rooftop solar in the Pearson Eco-Business Zone surrounding Toronto’s Pearson Airport. The study has recently been published on the Toronto Region Conservations Authorities Website. We encourage you all to take a look!
The PPG Rooftop Solar Study was lead by Laura Zizzo and co-authored by:
- Robert Wakulat, B. Comm., J.D. an independent renewable energy and climate change lawyer and
- Dave Bristow, B.A.Sc., M.A.Sc., currently pursuing his doctorate at the University of Toronto in engineering.
The report categorized the challenges in four broad categories:
- Economic Hurdles (Understanding investment opportunities, evaluating, assigning and determining the value of rooftop rights, sourcing financing, etc..)
- Legal and Policy Hurdles (Understanding the Green Energy Act and Feed-in-Tariff program and associated rules, leasing issues, building code and municipal implications)
- Institutional Knowledge/Capacity Hurdles (Understanding market development, building internal knowledge and seeking external service providers, etc…)
- Technical Hurdles (load modeling, grid connectivity, understanding operation and maintenance factors)
The reports recommendations focus on increased information and education to facilitate better understanding of criteria and parameters and to increase comfort with the subject-matter, including:
- Education and communication
- Legal information and templates
- Identifying service providers
- Identifying sources of financing
- Policy and regulatory clarity
- Promoting and facilitating pilot projects
Please consult the Rooftop Solar Study or contact Laura Zizzo for further information.
Corporate Knights and Zizzo Allan bring you the Legal Climate Blog
May 12, 2010
We’ve started a regular blog on Corporate Knights magazine’s website – called the Legal Climate Blog. Our first post is reproduced below.
Can Law Drive Climate Action?
Posted Monday May 10, 2010
A simple fact—trees take in and store carbon dioxide—has turned into a complex legal issue. While some may think trees can easily hold most of the excess carbon dioxide in the atmosphere, before we can legally encourage forest sequestration there are a number of important questions to ask. Who owns the land? Who has the right to the trees? Are there First Nations rights/claims involved? Does law already protect the lands in question? What are the risks and liabilities associated with forest disturbances such as forest fires?
This example shows how complex legal and policy issues must be addressed to put climate change solutions into practice. The science is clear: we need to reduce greenhouse gas emissions, urgently. Workable solutions will depend on strong law and policy tools.
The international community has attempted to work together to address this truly global problem. For over 30 years, the United Nations have been working towards international agreements. The most recent activities are summarized in the timeline below.
International Negotiations Timeline
1992 – United Nations Framework on Climate Change (UNFCCC) signed
1994 – UNFCCC entered into force, it now has 194 parties – widespread acceptance and agreement to prevent dangerous climate change
1997 – Kyoto Protocol Signed committing developed countries to GHG reductions
2005 – Kyoto Protocol enters into force, implementing emissions trading, the Clean Development Mechanism and Joint Implementation as flexibility mechanisms. The first commitment period is 2008-2012.
2007 – Bali Action Plan completed – Parties agree to negotiate a post-2012 agreement
2009 – Copenhagen Accord – No formal agreement made in Copenhagen but movement towards a treaty in the future. The Copenhagen Accord allows nations to pledge domestic targets and plans for GHG reduction. Although many countries have submitted pledges, we could see a rise in GHGs globally even if pledges made at Copenhagen are met.
Canada was an active participant in the above international process, and it committed to reduce greenhouse gas emissions (GHGs) to 6% below 1990 levels by 2012 under Kyoto. Despite this, emissions have continued to rise to 30% above 1990 levels. Last week, the House of Commons passed the Climate Change Accountability Act, if passed into law, it would establish reduction targets in line with science and require Canada to get working on implementation rapidly. This Act is hotly debated and not supported by the Conservative Government. Presently, there are few clear political and legal strategies to get Canada on its way to a low-carbon future.
In spite of the challenges, climate change is one of the defining issues of our era, and it must be addressed. We will have to prepare and adapt to the changing legal climate.
This is the first post in a series that will bring some of these challenging issues into focus. In this post we hope to briefly explain some of the building blocks of climate law and policy. Here are some common terms we’ll be using:
• GHGs – greenhouse gases (most commonly including the following six gases: carbon dioxide, methane, nitrous oxide, sulphur hexafluoride, hydrofluorocarbons and perfluorocarbons)
• Carbon Tax – a price on carbon in the form of a tax applied in proportion to the carbon content of goods. Most commonly applied to fuels. British Columbia and Quebec both have a form of carbon tax.
• Cap and Trade – a mechanism to put a price on carbon through a regulated system that creates a cap on emissions in certain sectors. Regulated entities can then trade allowances to meet obligations, providing cost effective compliance alternatives and new revenue streams for those that can reduce below their cap. Cap and trade systems are currently being designed at the provincial, national and regional levels.
• Offsets – carbon credits created by entities outside of the regulated sector, such as by planting trees or changing farming practices to keep more carbon sequestered or changing industrial practices to prevent GHG emissions from occurring. Buyers can “offset” their emissions by purchasing credits on a voluntary or compulsory basis. Offsets provide opportunities for cost effective emissions reductions and financial incentives for activities that increase GHG reduction or sequestration.
• Protocols: The methodologies by which carbon offsets are created. Protocols are similar to an instruction manual for carbon offsets, and they have been developed and used in various crediting systems around the world including under the United Nations system and voluntary regimes.
• GHG Accounting and Reporting – The requirement to measure and report GHG emissions from business activities driven by the market, customers, investors and/or regulators. For instance, a new regulation in Ontario requires certain entities to measure and report GHG emissions. Investors and securities regulators have begun to require information on GHG emissions across sectors.
Laura Zizzo and Travis Allan are Partners at Zizzo Allan Climate Law LLP (ZACL), working on climate change, renewable energy, environmental and aboriginal law and policy. They work with a broad range of clients advising on carbon finance transactions, offset mechanisms, compliance issues and environmental law matters. ZACL was established to respond to the changing legal framework in light of climate change and other environmental issues. These new realities demand that lawyers look beyond traditional legal practice and explore new ways of doing business, with an emphasis on collaboration across disciplines and providing clients with relevant, innovative and strategic results. www.zizzoclimate.com
Great idea: using non-chemical changes to control malaria
May 6, 2010
This post from Yale360 blogger Sonia Shah caught my eye as a great example of how we can use practical preventative techniques to reduce a problem without having to resort to chemicals and other environmentally damaging techniques. Having had malaria twice (in the span of three months, no less!) I’m a pretty big fan of anything that reduces malaria infection.
Shah notes that “malaria-carrying mosquitoes, all of which hail from the genus Anopheles, don’t generally venture far from where they hatch, and each species tends to lay its eggs in a specific kind of water body. Some prefer shady, flowing waters; others require sunlit puddles. Some can tolerate brackish water, while others must have clear water. That means that if people’s exposure to the habitats of local malarial mosquitoes can be reduced, they will get fewer bites, and thus less malaria.”
Some of the techniques that can reduce the habitat for malarial mosquitoes include draining standing water and clearing vegetation around waterways near homes.
Now we just need this kind of common sense approach to climate change! You can find the full article here.
Climate Change Accountability Act Passes through House of Commons
May 6, 2010
Bill C-311, the Climate Change Accountability Act, passed yesterday with a vote of 149 to 136. Opposition parties united to pass the private members bill, which now must pass through the Senate before becoming law (since the Senate now has a Conservative majority, this may be a difficult task).
C-311 is Canada’s only federal climate change–specific legislation. It would enact
- A long-term target to reduce GHG in Canada 25% below 1990 levels by 2020 and 80% below 1990 levels by 2050. (targets consistent with more ambitious countries internationally)
- Obligation on the Commissioner of the Environment and Sustainable Development to review proposed measures to meet the targets and submit a report to Parliament
- Authority for the government to make regulations in order to meet targets, and set penalties for those out of compliance with its regulations
- Duties of the National Round Table on the Environment and the Economy
- Duties on the Minister of Environment to table plan to meet targets.
The passage of this bill provides further support for a national climate strategy. Only time will tell how much action will occur under this piece of legislation. As a the courts have recently declared with respect to the Kyoto Protocol Implementation Act, they are unlikely to enforce a piece of legislation dealing with the “political” issue of climate change.
Bill C-311 provide promise for regulatory action on climate in the short and medium term. Most importantly, it reflects the sentiments of the majority of Canadians – the desire to participate as a leader in the international response to climate change and act responsibly.
Some of the debates on the bill can be found here: http://openparliament.ca/bills/1998/
The full text of the bill can be found here: http://www2.parl.gc.ca/HousePublications/Publication.aspx?Docid=4330053&file=4
BC Clean Energy Act Introduced
May 5, 2010
On April 28, 2010 the BC Government introduced its new Clean Energy Act. Backgrounders and info can be found here and here .
The new act focuses on “…expediting clean energy investments, protecting B.C. ratepayers, ensuring competitive rates, encouraging conservation, strengthening environmental protection and aggressively promoting regional job creation and First Nations’ involvement in clean electricity development opportunities” (quoting the BC Government’s press release).
The act is already facing some controversy because it centralizes power over large energy “mega” projects with the Provincial Government as opposed to the BC Utilities Commission and because it will likely raise electricity prices. The energy pricing critique should be familiar to those of us in Ontario, and it is important to keep in mind that another focus of this act is energy conservation (which tends to respond pretty well to increases in electricity prices).
This is an exciting time for Canada. We were down in San Francisco at a large carbon markets conference a couple weeks ago and BC and Ontario representatives were front-and-centre at most panels. North America is watching our provincial response to climate change right now, and that can’t be a bad thing.
Gulf Oil Leak: huge environmental and political consequences
May 1, 2010
The oil spill is a ecological disaster of historical perportions, some are calling it President Obama’s Katrina. We know that the detrimental environmental effects will be serious. The fragile gulf ecosystem may be take years, decades to recover.
Some are saying that the oil spill will have a detrimental effect on any climate bill. This is because the bi-partisan senate bill has a compromise provision in there regarding off-shore drilling – rightly, no one wants to support offshore drilling right now. So, without the compromise, it may be very very difficult to get legislation passed quickly. Perhaps this is a perfect storm. Perhaps something better is around the corner.
The world is waiting for legislation in the US. Without it, the global community will have a very difficult time of addressing climate change. The attention to the US’s addition on oil and to the perils of feeding this addiction through more dangerous means of exploration may help encourage investment and support for a transformative bill. One that will ween us off the addiction, and help us move towards the low-carbon economy.
