CLEAN ENERGY

1
Paul Horton January 30, 2008
JOB CREATION
CLEAN ENERGY
SMART TECHNOLOGY
STRONG FARM ECONOMIES
INDUSTRY GROWTH
2
(No Transcript)
3
(No Transcript)
4
Carbon Stabilization Wedges
5
Carbon Stabilization Wedges
6
Solutions
Efficiency

• Efficient use of vehicles
• Reduced use of vehicles
• Efficient buildings (2 wedges)
• Efficient baseload coal plants

Decarbonization of Power

• Replace coal with gas for baseload power
• Capture and store C02 from power plants
• Replace coal with nuclear power
• Replace coal with wind power
• Replace coal with solar PV power

7
Solutions
Decarbonization of Fuel

• Capture C02 at hydrogen plants
• Capture C02 at coal-to-syfuels plants
• Wind H2 in fuel-cell car of gasoline in hybrid
  car
• Replace fossil fuel with biofuels

Forests and Agricultural Soils

• Reduce deforestation, increase forests
• Conservation tillage

8
Buying the Fastest, Most Effective Climate
Solutions

• 10 cents
• 1 kwh of electricity from nuclear (with
  subsidies)
• 1.2-1.7 kwh of electricity from unsubsidized
  wind
• 2.4-8.9 kwh from cogeneration (combined heat
  and power
• Up to 10 kwh from improvements in end-use
  efficiency
• Amory Lovins, Rocky Mt. Institute

9
One Union Square Annual Energy Use
20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
kWh per year
10,000,000
Saving 7 million kWh per year power for 420
homes per year Saving 452,000 per year 16.57
Return on Investment
8,000,000

• 40 savings 7 million kWh/year
• 452,000 per year
• 16.57 ROI

6,000,000
4,000,000
2,000,000
0
1994
1996
1999
2000
2004
2002
2003
2001
10
NW New Renewable Projects 1998
Source Renewable Northwest Project
11
(No Transcript)
12
Policies Passed to Date (in Washington)

• 2005 Clean Cars
• 2006 Renewable Fuel Standard
• 2006 Renewable Electricity Standard
• 2007 Emissions Performance Standard
• 2007 Governors Executive Order
• 2007 Reductions goals adopted legislatively and
  Climate Action Team established.

13
Where are we today?
14
Where are we today?
15
2008 Policy Agenda

• Capping Climate Pollution, Building the Clean
  Energy Economy

• Make goals binding caps on global warming
  pollutants
• Principles for an economy wide cap-and-trade
  system
• Mandatory reporting for major sources of
  pollution
• Weave goals into existing legal framework
• Report back to legislature on goals and
  efforts
• Resources to state agencies to carry this out

16
Change Driver

• The clean energy market is more than twice as
  big as passenger and cargo planes
• The Northwest is positioned to be a leader in
  supplying clean energy markets all over the world

Clean Energy a 3.2 Trillion Industry
Clean Energy Industry
Aircraft Industry
17
Change Drivers
ENERGY SECURITY GOES BIPARTISAN
"If you're thinking about this as an
environmental issue first and foremost, you're
missing the point. (Energy independence) is a
national security emergency."
-- Frank Gaffney,
Center for Security Policy
18
Change Driver

• Oil price pressure is up
• Exploding demand in China and India
• World oil price permanently over 50/barrel?
• US, world vulnerable to oil shock.

• Political pressure is rising
• Oil is salient and pocketbook.
• Energy Independence polls off the charts.
• Rs and Ds competing for leadership.

19
Change Driver
CARBON MARKETS ARE COMING

• US vs. Kyoto world
• States pass carbon policy
• AB32 - California adopts strongest policy yet
• other states will follow
• Washingtion HB6001
• 550? cities make climate commitments

20
Climate Liability
Institutional Investors Recognize Risk
The mainstream financial community has woken up
to the financial implications of climate change.
Carbon Disclosure Project - representing 95
institutional investors from throughout the world
with over 10 trillion in assets.
21
Climate Risk
Big Business Recognizes Risk
It is now difficult to identify a sector of the
economy that would not be affected in some way by
climate change. The question is no longer whether
any portfolio contains climate risk, but how
much.
Innovest Strategic Advisors for CERES, an
investor-public interest alliance representing
over 300 billion in assets.
22
Climate Liability
Utilities Recognize Risk
One great, unknown element that will have a
profound impact on the cost and direction of
future environmental policy and this is the
public policy response to climate change and
future requirements for controlling greenhouse
gas emissions. I can tell you as a business
leader this makes me very uncomfortable.

• Frank Cassidy, president of PSEG Power

23
Concept of the Funnel
Decline in Living Systems
?
Margin for Action
2008
Population x Affluence x Technology
24
Basic Human Needs

• Subsistence
• Protection/Security
• Affection
• Understanding
• Participation
• Leisure
• Creation
• Identity/Meaning
• Freedom

Manfred Max-Neef
25
Then Comes You!
Just Do it!
26
You can help!
For more information visit our web site
www.climatesolutions.org