Michael W. Taylor, Honeywell: Government (1) + Business (1) = 3
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Transcript of Michael W. Taylor, Honeywell: Government (1) + Business (1) = 3
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
$
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!