Cyber Monday you’ve met your match. What China’s consumerism means for our planet.

6 years 10 months ago

By Xixi Chen

Happy Cyber Monday everyone.

For those of us who didn’t break the bank on Black Friday, we’re filling up our online shopping carts with Cyber Monday sales – seeing if we can break new records of consumerism. I know I am.

Last year’s Cyber Monday was the biggest day in the history of U.S. e-commerce, totaling $3.45 billion in online purchases. That’s an enormous amount of money. But it’s just a drop in the bucket compared to the $25 billion spent on China’s Singles Day – a recording-breaking day for sales.

What started as an anti-Valentine’s day holiday for single Chinese people, Singles Day makes our Black Friday and Cyber Monday look like any ordinary day of shopping. Singles Day has become the world’s largest online shopping holiday. When you look at China’s population, it’s no surprise they out-shopped us. The economy is made up of 500 million middle class consumers – an exploding population – all of which are embracing the convenience and material abundance of consumerism.

Are we killing the planet with our holiday shopping?

With this demand for consumerism comes a rise in manufacturing, packaging and distribution. Every product purchased comes from a long journey. It’s been designed, sourced, manufactured, packaged and delivered to you at home or to your favorite store. Every step along this journey comes with steep environmental costs. Now multiply that product – and its costs – to every item purchased by hundreds of millions of consumers.

The good news is that the Chinese government is taking action.

If the country wants to continue driving economic growth, the conventional patterns of manufacturing have to be changed. So what’s the plan? China is creating policies promoting sustainable supply chains, manufacturing and consumerism – and they’re at innovative ways to make this possible.

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Manager, EDF+Business

China’s Made in China 2025 plan, an initiative introduced in 2015, has been a major driver in the country’s success. The goal is aimed at upgrading manufacturing industries towards an innovation-driven and information technology-based, low-carbon economy. Roughly 1,000 pilot facilities have popped up in an effort to redefine manufacturing, reducing impacts through the entire product life cycle. And the degree of technological advancement is equally as impressive. Artificial intelligence, smart energy management – it’s all helping China bridge the gap to become a cleaner manufacturing economy.

Even more encouraging is how the government has inspired others to take action, especially business. Companies play a big role in championing sustainable industries. They can leverage their size to drive change at scale, accelerating the revolution to a clean energy future. Here’s how they are switching up china’s manufacturing game:

  1. Focus on the supply chain. Companies based in China, or those with local Chinese suppliers, are reducing their carbon footprint by looking outside their own operations – driving change and saving money at scale Kingfisher was looking for strategies to better help its top 100 suppliers reduce both CO2 emissions and energy use. EDF Climate Corps fellows Yuan Yang and Zheyang Chen conducted a supplier carbon emission survey and identified product categories with high emission intensity, as well as factories with strong energy saving potential, that should be prioritized for advanced supply chain carbon management. Thanks to this updated process, Kingfisher can better understand and manage its supply chain carbon emissions, target high-use suppliers and strong energy saving potentials and access more high-quality data.
  2. Invest in renewables. China has been the world’s biggest solar market since 2013, and is on pace to hit record solar installations this year. To give you some perspective, Chinese workers install an array of solar panels at least the size of a soccer field every hour. Take global retail giant, Walmart. The company wanted to increase the use of solar power throughout its supply chain, and do so by providing suppliers with practical training materials on renewable energy program implementation. EDF Climate Corps fellows Junli Li and Xinyuan Wen identified 70% of Walmart’s 500 key supplier factories eligible for rooftop solar projects through the use of energy management contracts. Taking action, the fellows developed a rollout plan for implementation and a training session for the supplier factories. If all factories follow through with the implementation, 1.15 gigawatts of solar could be installed, generating 1.63 billion kWh of electricity per year.
  3. Lead on technological innovation. Scaling energy efficiency is an easy and cost-effective way of reducing corporate carbon footprints. But companies are using innovation to go beyond the low-hanging fruit. Coca-Cola wanted to provide its utility with an estimate of predicted electricity use prior to each purchase cycle, to take advantage of utility incentives. EDF Climate Corps fellow Yiping Shao created a prediction model that estimates daily total electricity use of a Coca-Cola plant for a one-month period. In addition to identifying big energy and financial savings, the model can be used at other Coca-Cola facilities and at other companies in the beverage industry, helping better align businesses and utility companies in their efforts to match supply and demand, and reduce wasted energy.

Finding the intersection of prosperity and sustainability

It’s an exciting time for China. They are at the intersection of prosperity and sustainability. A parallel made possible thanks to a drive for innovation backed by smart policies – something the U.S. is currently lacking. But they’re not there yet. It’s a long way to go before this rise in consumerism can be balanced. Fortunately, the businesses behind the products we buy are moving forward. They’re taking the reins, committing to making their operations cleaner.

That way the next time you go online or in-store to buy something, you can feel better about your purchase.

Follow Xixi on Twitter, @Talk2Xixi

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Xixi Chen

The New Normal: California-Quebec Auction Clears Above the Floor Price

6 years 10 months ago

By Erica Morehouse

Photo: Pxhere

By Erica Morehouse and Katelyn Roedner Sutter

California and Quebec released results today for the November 2017 auction which showed steady prices well above the floor for the second auction in a row. The November auction was also the second in a row to sell out of allowances. Both outcomes are a reflection of the secure market that is now set to run through 2030, and demonstrate that the design features of cap and trade are working as expected to maintain a strong and stable program.

November Auction At-a-Glance

  • Approximately $862,407,989 raised for the Greenhouse Gas Reduction Fund to invest in a number of programs including clean transportation, urban greening, and improving local air quality.
  • All current vintage allowances were sold of the 79,548,286 offered for sale, including 15,909,657 allowances that were previously unsold in 2016. This is the first auction including held allowances.
  • Current vintage allowances sold at $15.06, $1.49 above the $13.57 floor price. This is 31 cents higher than the August clearing price.
  • All future vintage allowances sold of the 9,723,500 offered for sale. These allowances will not be available for compliance use until 2020. For the second auction in a row, future vintage allowances sold out above the floor price, showing strong confidence in the cap-and-trade program after 2020.

The Nuts and Bolts of Cap and Trade, Important and Working

This auction demonstrated how some of the “behind the scenes” elements of cap and trade are working – and succeeding – to keep the market strong and stable.

Importance of Banking

These auction results show that businesses’ ability to “bank” allowances for use in later years when prices will be higher and the cap tighter are critical for market stability, and most importantly, emissions performance. In 2016 and early 2017, before California legislatively extended its cap-and-trade program from 2020 to 2030, demand for allowances was falling off in part because emissions were already below the cap and the uncertainty of the future program discouraged any banking. With the cap extended to 2030, however, demand and prices are more stable and there is once again a strong incentive for polluters to save their allowances for future years and make cost-effective emission reductions sooner than required for compliance. Early reductions can be cost effective for companies, and are great for the environment.

First Auction to Offer Unsold Allowances

The November auction is the first to offer previously unsold allowances, in this case allowances held over from the 2016 auctions. Last year, when demand for allowances was lower, these unsold allowances were held to be re-offered at later auctions. This adjusted supply downward when needed and adds extra supply when allowances prices start to rise (as they are doing now), creating price stability in the market. These 15 million extra allowances now mean there was enough supply to meet demand.

California Emissions Continue to Decline

Further good news from November, as EDF reported yesterday, is that the California Air Resources Board released their 2016 emissions report and found that emissions covered by cap and trade have not only continued to decline, but are doing so at a faster pace than in previous years.

  • Emissions are a whopping 58 million metric tons below the cap for 2016, an amount equivalent to taking over 14 coal fired power plants off-line for a year. Even if some of these “saved” pollutants are emitted later, this is a win for the atmosphere since there will be several years where they will not be contributing to atmospheric warming.
  • The bulk of these reductions came from the electricity sector, which reduced emissions by increasing renewable production and hydroelectricity and decreasing imports from coal-generated electricity.
  • Transportation emissions did increase in California as they did in the rest of the world. However, the state has a number of policies that are targeted at reducing those emissions and cap and trade is keeping overall emissions in check so they have time to work.

Today’s auction results show one more data point in the example California and Quebec are setting for the world in how to implement effective climate policies. This example was on display at the recent UN Conference of Parties (COP23) in Bonn, Germany that wrapped up last week. Governor Brown as well as three other U.S. Governors and many mayors were in attendance making sure the world knew Donald Trump cannot prevent U.S. states and cities from acting to reduce emissions and protect their residents.

Erica Morehouse

Senate funding proposal to eliminate EPA’s IRIS program is a public health debacle

6 years 10 months ago

By Jennifer McPartland

Jennifer McPartland, Ph.D., is a Senior Scientist with the Health Program.

Yesterday, the Senate Committee on Appropriations majority posted their version of the FY2018 Interior, Environment and Related Agencies appropriations bill online (see bill here and accompanying explanatory statement here; see the minority’s summary response here). The legislation lays out spending measures for a number of agencies including the Environmental Protection Agency (EPA).  In releasing the bill yesterday, the majority has bypassed the amendment and markup process.

Among other cuts, the bill eliminates the EPA Integrated Risk Information System (IRIS) Program. At best a small fraction of its responsibilities – and only one-third of its funding – would be re-allocated to the Office of Chemical Safety and Pollution Prevention (OCSPP).

If realized, this short-sighted move would be a debacle in terms of protecting public health from harmful chemical exposures.  

Most well-known for its gold-standard chemical toxicity reviews, EPA’s IRIS Program is a non-regulatory program that provides critical information and scientific expertise to support decision-making across the agency’s programs and regional offices as well as to other federal agencies, states, localities, and tribes.

Among other things, IRIS chemical reviews are used to inform clean-up decisions at Superfund and other contaminated sites, set standards to ensure clean drinking water, assess health risks from toxic air emissions, and evaluate health risks of chemicals in commerce. These are all legally mandated activities stipulated under different laws to ensure the water we drink, the air we breathe, and the lands where we work, live, and play are safe.

Beyond supporting requirements under the law, IRIS Program experts are often called in to help regions, states, and tribes respond rapidly to emergency and other priority situations. IRIS staff are invaluable in these moments, when time is of the essence and experts are few and far between.

So, why would such a vital program be slated for elimination? Segments of the chemical industry and its allies in Congress (and now within EPA itself) have long complained about the quality of IRIS assessments, citing for support past reviews by GAO and the National Academy of Sciences (NAS). But they conveniently ignore the more recent impartial reviews of the program that have given it high marks.

While NAS panels have been critical of IRIS in the past, the most recent NAS review from 2014 praised the program for substantial improvements made over a short period time. EPA’s Science Advisory Board echoed the same sentiments just this past summer, noting that no other federal entity performs IRIS functions. Critics also neglect to mention that much of the remaining critique, such as the program’s listing on the “high-risk” list maintained by GAO, points to insufficient resources and throughput, not quality issues.

And, don’t be fooled, moving IRIS staff out of the non-regulatory Office of Research and Development (ORD) into OCSPP would cost EPA scientific expertise that serves the entire agency, severely undermining the legal responsibilities Congress has given it.

Such a move would also sever the independence between scientific review and regulatory decisions informed by such reviews. This approach has been argued against in several NAS reviews of risk assessment. Indeed, per EPA’s website: “The placement of the IRIS Program in ORD is intentional. It ensures that IRIS can develop impartial toxicity information independent of its use by EPA’s program and regional offices to set national standards and clean up hazardous sites.”

In sum, EPA’s IRIS program plays a vital role in ensuring that our health is protected from harmful exposures. Instead of eliminating the IRIS Program, Congress should be dedicating additional resources in order to maintain its current workload and boost the program’s ability to help support chemical risk evaluations under the newly reformed TSCA.

Jennifer McPartland

Clean energy is lowering electric bills in North Carolina – but this solar trade war could reverse that trend

6 years 10 months ago

By EDF Blogs

By Dionne Delli-Gatti, Director, Southeast Clean Energy

North Carolina’s in the middle of a clean energy boom, but the looming threat of an international trade war may leave the state’s incredible success story a few chapters short.

Over the last few months, two floundering solar manufacturers petitioned the U.S International Trade Commission (ITC) to take action against foreign competitors. These companies want the United States to levy tariffs on imported solar products because they can’t match the cheaper prices. Recently, the ITC agreed with the companies’ complaint and recommended to President Trump a 30 percent tariff.

President Trump will decide this month what to do – he can follow the ITC recommendation, but, by law, doesn’t have to. He should reject the tariffs, so North Carolina’s clean energy economy can continue to thrive.

Clean energy success

Today, there are more than 34,000 clean energy jobs in North Carolina (a 30 percent increase since 2015), more than 5,600 MW of cumulative renewable energy capacity, and nearly 1000 clean energy firms that contribute more than $6 billion in annual revenue to the state’s economy. North Carolina also is now second in the nation for total installed solar energy capacity.

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Beyond these impressive job and revenue numbers, clean energy investments are putting downward pressure on electricity rates, saving North Carolina electricity customers money. A 2015 analysis of the drivers behind retail electricity rates in North Carolina concludes that, as the costs of conventional power generation (like coal and nuclear) continue to rise, investments in clean energy are helping to keep overall electricity rates lower. The report estimates that investments in clean energy have already saved North Carolinians more than $160 million on their electricity bills since 2007, and could produce more than $500 million in additional savings by 2029.

The clean energy future in North Carolina looks bright indeed, but a tariff would risk the important financial benefits that clean energy is delivering to electricity customers in North Carolina.

Economic benefits

North Carolina’s business and political leaders know that clean energy is an economic issue. It brings investment and jobs, and future-proofs our economy from fluctuating energy prices and the increasing costs associated with fossil fuel-based generation.

As a result, elected officials on both sides of the aisle in North Carolina have rallied around clean energy. The passage of the Competitive Energy Solutions for NC Act this past summer is the most recent example. The new legislation expands market opportunities for renewable energy developers and provides electricity customers with more clean energy access and choice. The measure also increases competition in the marketplace, helping to ensure that North Carolinians can get all the benefits of solar energy and other renewables at bargain prices.

Other voices

Some in North Carolina’s congressional delegation have been strong and vocal in their opposition to potential tariffs. Senator Thom Tillis led a bipartisan group of Senators that urged the ITC to oppose tariffs. Senator Richard Burr urged the ITC to consider the consequences tariffs would have on North Carolina’s economy. Representatives Budd, Foxx, Holding, McHenry, Rouzer and Walker have all joined with other members of congress opposing tariffs.

In a letter to the ITC, Duke Energy – North Carolina’s largest electricity provider and one of the largest electric utilities in the U.S. – urged the commission to consider the harmful consequences of actions that would artificially increase the costs of solar energy, like imposing tariffs. Duke Energy urged the ITC to avoid actions that would “disrupt the growing and developing clean energy marketplace”, adding that “[s]uch a disruption potentially harms our customers, our company, our employees and the larger power sector as a whole.” The company also noted that “the delivery of reliable, affordable, and increasingly clean energy relies upon international trade policies that increase supply chain stability, not policies that destabilize it.”

Looming threat

By artificially increasing costs and disrupting supply chains, the ITC’s proposed 30-percent tariff threatens to destabilize North Carolina’s new competitive renewable energy markets just as they are getting started. Higher costs imposed by a punitive tariff would leave families and businesses with fewer choices and higher bills.

Unfortunately, the ITC has declined to heed the advice of our elected representatives in Congress, instead recommending this crippling 30-percent solar tariff. We need strong leadership more than ever, and we hope that our senators and representatives from The Tar Heel State and elsewhere will redouble their effort and direct their focus on the president.

If we want North Carolinians to continue reaping the numerous benefits associated with a competitive and growing clean energy industry, we’ll need steadfast engagement to prevent the ITC’s tariff proposal from undermining our state’s favorable business environment.

Photo source: Unsplash/AmericanPublicPowerAssociation

EDF Blogs

Clean energy is lowering electric bills in North Carolina – but this solar trade war could reverse that trend

6 years 10 months ago
By Dionne Delli-Gatti, Director, Southeast Clean Energy North Carolina’s in the middle of a clean energy boom, but the looming threat of an international trade war may leave the state’s incredible success story a few chapters short. Over the last few months, two floundering solar manufacturers petitioned the U.S International Trade Commission (ITC) to take action […]
EDF Blogs

More questions than answers: EDF submits extensive questions to EPA in advance of public meeting on new chemical reviews

6 years 10 months ago
Richard Denison, Ph.D., is a Lead Senior Scientist. Environmental Defense Fund yesterday submitted questions to EPA that we hope are answered by the agency at the public meeting it is convening on December 6th on changes to its new chemicals reviews. Despite providing some new documents in advance of the public meeting, details about EPA’s new […]
Richard Denison

More questions than answers: EDF submits extensive questions to EPA in advance of public meeting on new chemical reviews

6 years 10 months ago
Richard Denison, Ph.D., is a Lead Senior Scientist. Environmental Defense Fund yesterday submitted questions to EPA that we hope are answered by the agency at the public meeting it is convening on December 6th on changes to its new chemicals reviews. Despite providing some new documents in advance of the public meeting, details about EPA’s new […]
Richard Denison

More questions than answers: EDF submits extensive questions to EPA in advance of public meeting on new chemical reviews

6 years 10 months ago
Richard Denison, Ph.D., is a Lead Senior Scientist. Environmental Defense Fund yesterday submitted questions to EPA that we hope are answered by the agency at the public meeting it is convening on December 6th on changes to its new chemicals reviews. Despite providing some new documents in advance of the public meeting, details about EPA’s new […]
Richard Denison