Reducing US greenhouse emissions

The Kyoto Protocol, the developed world's effort to reduce greenhouse gas emissions relative to their 1990 levels, has largely failed. Only the UK and Germany have managed to reduce their emissions, in part due to the implementation of market mechanisms via a cap-and-trade system.

The US has increased emissions 16% since 1990 and China and India, while not precisely covered by the Kyoto Protocol, have been increasing emissions and are together with the US the biggest three polluters. The International Energy Agency predicts that China will surpass the US as the world's largest carbon dioxide emitter in 2009.

What is the lowest handing fruit in the US for reducing emissions?
Petroleum is responsible for the majority of worldwide greenhouse gas emissions. Of the four energy-using sectors; transportation, industrial, commercial and residential, transportation contributes a disproportionately large share of the US's carbon dioxide emissions. The chart below from the US Department of Energy shows expected emissions by sector and fuel type.

Source: http://www.eia.doe.gov/

Industrial and Commercial Sectors not appropriate to address
According to Stanford energy economist and policy advisor, James Sweeney, the industrial sector has a complex energy usage mix and is not the best area to address first. Commercial energy use, with an emphasis on fluorescent lighting, is also not an obvious area for initial pursuit since the sector is one of the most efficient.

Transportation restructuring - the biggest impact
The single biggest impact on reducing US carbon dioxide emissions would be a redesign of motor vehicles, in particular, incorporating more stringent fuel efficiency requirements and redefining “truck” to not apply to passenger vehicles such as PT Cruisers, SUVs, etc.

Residential sector - additional gains
In the residential segment, a substantial improvement in energy efficiency can be gained by switching from incandescent bulb lighting to compact fluorescent bulb lighting. It appears likely that California and other forward-thinking states will pass compact fluorescent lighting legislation and that more efficient mercury-free bulbs will be introduced in the next few years.

Chevron supports Global Warming

Some good progress was made this week as Al Gore implored Congress to freeze greenhouse gasses at a Capitol Hill hearing and 65+ institutional investors including CalPERS signed a pact encouraging Congress to enact green legislation. The Ceres pact is a follow-up to the 225+ institutional investor launch of the Carbon Disclosure Project in January, 2007 which centralizes emissions reporting from over 1,000 corporations including General Electric, DuPont and Caterpillar at one website.

On the other hand, not in the press and not getting the message at all is Big Oil company Chevron, boldly asking investors to vote against proposal #5 on its annual proxy to "Adopt Goals and Report on Greenhouse Gas Emissions." Not surprising given the entrenchment (some have been board members since 1982 and 1989) and lack of diversity (one female, added in 2006 and two people of color) on its board.

At least many corporations are taking action and even some Big Oil companies such as BP are part of the Carbon Disclosure Project. It will be nice to finally see some improvement in stock prices from companies like GE after their successful multi-year effort to reduce emissions.