Talk of climate change is everywhere these days. How do we cut through the confusion?
Amelia: First, it's important to note that climate change requires strategic action within the private and public sectors, not one or the other. A number of hallmark regulations are emerging right now, with some states, like California, Maine, and New Jersey, regulating carbon dioxide emissions ahead of the U.S. Environmental Protection Agency. CDM is tracking these emerging local, state, and federal policies and how they'll apply to local governments and industries.
Allan: Right. Regulatory developments are occurring weekly, which requires watching the trends closely, predicting further developments, and determining how these will affect our clients, domestically and—for some industrial operations— internationally. Our goal is to help clients avoid being reactionary in the face of the buzz. Greenhouse gas management is one place where it's essential for companies to be proactive to maintain their profits and minimize their risk.
So, regulations are driving greenhouse gas management?
Allan: Conventional wisdom says so, but in reality, companies are also feeling the pressure on the financial side. Shareholders, insurance firms, lenders, and rating companies increasingly want to see emission reductions and accountability via reports. It's quickly evolving into a material risk issue for companies. from interest in public health and environmental protection, and the desire for local leadership on the issue—cities have a lot to gain from reducing greenhouse gas emissions, especially in light of significant potential energy savings and financial benefits.
Why act now, rather than waiting for additional regulation?
Allan: One word: cost. Taking the right steps now will save money in the long run. In the 1980s and early 1990s, companies had to reduce emissions under the Clean Air Act, and technologies and service firms were readily available to assist. But as compliance deadlines got closer, it became difficult to comply because costs for technologies and emission credits had escalated. In fact, we're already beginning to see large purchases of greenhouse gas emission offsets, with many of the low-cost offsets being snapped up. These offsets will become more expensive over time.
Just what should businesses and communities do?
Amelia: This is the question on everyone's minds, yet there's no single, consistent solution. Community solutions may involve strategic planning, assessments, permitting, infrastructure design and construction, and emission reduction projects, but the trick is to identify the right total solution for each situation. In the public sector, we often begin by helping our clients determine what climate change means to them—the utility director, the city planner, the engineer—and estimating the impacts to budgets and operations. Then we consider how they could benefit from greenhouse gas reductions. We look at cost savings, of course, as well as energy security and other co-benefits, like improved local air quality and quality of life.
Allan: Industrial managers often want help assessing and minimizing risk, developing an effective strategy, and aggressively implementing that strategy while costs are still low. This holds down expenses and maximizes shareholder value and profits.
Where do you see greenhouse gas management in the next few years?
Amelia: Things are moving at an incredible pace. A key trend—and source of confusion—involves registries and reporting. In the United States, the Chicago Climate Exchange and the California Climate Registry have led to a proliferation of discussions in various states. Now, more than 30 states are working together toward a single registry for reporting greenhouse gas emissions. In 2 to 3 years, we may well have a national system that supports emission accounting and a single standard for reporting.
Allan: When you look at the history of emissions inventories and trading, you can see a period of confusion, followed by a standard, then refinement of that standard. Right now, we're in the first phase, but CDM is monitoring this rapidly evolving process very closely. The good news is that a proactive approach to greenhouse gas management has immediate and long-term advantages.
What projects are you working on?
Amelia: Too many to mention! We're often asked by both the public and private sectors for help with greenhouse gas management strategies, renewable energy and alternative fuels, and green facility design. For cities, towns, and regional planning associations, we're working to reduce greenhouse gas emissions through inventories and management plans and cutting-edge projects, like our work for the New York City Department of Environmental Protection and several utilities in New Jersey. We're also helping to capture landfill gas for power generation, developing and implementing composting programs, and improving energy efficiency at publicly owned treatment works.
Allan: For industry, CDM is helping companies assess their risk, inventory emissions, develop corporate strategies, engineer greenhouse gas and energy management measures, and identify emissions offset opportunities in the United States and overseas.