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A New Obsession to Tackle Climate Change

"This obsession with a legally binding treaty [to tackle climate change] is an obstacle for countries achieving targets they have committed to," declared Paul Bledsoe, a climate change adviser to President Bill Clinton. "What we need is national will to reach stated goals."

Global Warming
CNBC.com
Global Warming

With the only international emissions agreement, the Kyoto Protocol, expiring in 2012 and greenhouse gases rising instead of falling, we clearly need a new obsession — or a way to pay for the most catastrophic impacts of climate change.

In a world facing economic meltdown, the question for many is not "how" but "why?" Even with carbon caps and emissions trading systems limited to Europe, parts of the U.S., and a voluntary market, the value of carbon trades in 2011 will top $140 billion. That's a big tax already imposed on the economy, even if offset by benefits that are less obvious. So could we stimulate economic growth (which would certainly answer the "why") with policies and technologies that emerge from something other than those being considered around the United Nations' table in Durban this week (thus answering the "how")?

The answer is yes. For example, according to a report from Environment America, California's "Million Solar Roofs" initiativehelped homes and businesses install one gigawatt of rooftop solar systems in just five years. This cost-effective program has put thousands of people to work around the state, stimulating the economy in one of the few bright spots of the construction sector these days. Twenty nine other states have followed, establishing targets for all types of renewable energy for themselves, which collectively will create new local businesses, jobs, contribute sales tax to state treasuries, and cut carbon emissions dramatically.

Even more impressive — and a more immediate boost to the economy — are energy efficiency measures begun by states, then transferred globally. California once held the crown of "most energy efficient state in the nation" at 40 percent more efficient than the national average. Recent figures show that Connecticut and New Jersey have adopted many of the same standards for buildings and appliances, propelling them into the lead in this competition to see who can get the most out of the least. Using similar measures, along with tough new limits on inefficient smelters and industrial facilities, China reports an improvement in energy efficiency of almost 20 percent in the past five years, helping it usher in a period of unprecedented economic growth.

Of course carbon emissions also come from transportation fuel, but again it is the regional governments that are making a difference. California set carbon pollution standards for new vehicles, which were adopted by 13 other states and finally by the Obama administration as federal rules. The result? Automakers are delivering less-polluting, more fuel-efficient cars and trucks of all sizes to showrooms, which save money for owners, improve air quality, and help to solve the climate crisis simultaneously.

Some quick calculations show that if the world followed these examples and became one-third more energy efficient, switched at least a third of its energy supplies to renewables and improved vehicle emissions by the same standards set in the U.S. today, we would achieve half of the long term carbon cutting goals set by many experts to avoid the most costly impacts of climate change. And all of these measures would be paid for with savings and sustainable economic growth

Realizing that this is their time, regional governments are helping each other do just that — in new organizations like former Gov. Arnold Schwarzenegger's R20 Regions of Climate Action—with policy, technology and finance to build a low carbon economy and harvest these benefits. More can be done over time as technologies improve even further and as a rebounding economy recognizes that it can afford a global cap-and-trade system or carbon tax to deal with the remaining carbon cuts that are needed.

There's nothing wrong with an obsession, as long as it's focused on clear goals with proven methods of accomplishing them. By looking to regional governments instead of obsessing over new treaties, the goals pursued in Durban are well within reach.

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Terry Tamminen, former secretary of the California Environmental Protection Agency, is president of Seventh Generation Advisors and an operating partner at Pegasus Capital Advisors, and author of "Cracking The Carbon Code: The Key To Sustainable Profits In The New Economy").

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