Seeing Is Believing: Creating a New Climate Economy in the United States #USNCE

NICHOLAS BIANCO

SEEING IS BELIEVING: CREATING A NEW CLIMATE ECONOMY IN THE UNITED STATES

WHY THE UNITED STATES?

Image: Chris Christner

5 OPPORTUNITIES FOR REDUCING GHG EMISSIONS:

1. Electric generation

2. Electric efficiency

3. Passenger vehicles

4. Natural gas systems

5. Hydrofluorocarbons

KEY FINDINGS:

1. WE DON’T HAVE TO CHOOSE BETWEEN ECONOMIC GROWTH AND AVERTING CLIMATE CHANGE

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KEY FINDINGS:

2. SUSTAINED TECHNOLOGICAL PROGRESS CREATES NEW OPPORTUNITIES

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KEY FINDINGS:

3. POLICIES CAN OVERCOME MARKET BARRIERS TO FACILITATE INVESTMENT & INNOVATION

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Photo haglundc

U.S. POWER GENERATION

A POWERSHIFT IN THE US

A POWERSHIFT IN THE US

Flickr, George Thomas

The Michigan Public Service Commission recently found that

new wind power was one half the cost of new coal generation.

Photo haglundc

Austin Energy in Texas recently contracted 150 MW of new solar at under 5 cents/kWh, which is cheaper than new natural gas, coal, or nuclear.

Competitive without tax credits

Photo haglundc

80% Price decline for solar PV systems since 2008

GROWING TOWER SIZE HAS OPENED UP NEW PARTS OF THE COUNTRY FOR WIND

GROWING TOWER SIZE HAS OPENED UP NEW PARTS OF THE COUNTRY FOR WIND

PASSENGER VEHICLES

VEHICLE TECHNOLOGY IS NOT STATIC

FUEL-EFFICIENT AND ELECTRIC VEHICLES INCREASINGLY COST-EFFECTIVE

$3,400-5,000

Fuel savings from vehicles in 2025

7x Cars with a fuel economy of 40 miles per gallon or more

ELECTRIC VEHICLES ARE ENTERING THE MARKET MUCH FASTER THAN HYBRIDS DID

ELECTRIC VEHICLE BATTERY PRICES ARE FALLING

Photo Patrick Smith

ENERGY EFFICIENCY

$450 billion

Electricity bill savings through 2030 due to appliance standards adopted since 2009

$2-$5

Consumer savings for every $1 invested in state efficiency programs

NATURAL GAS SYSTEMS

$1.5 billion

Increased annual revenues if all producers adopted best practices

HYDROFLUOROCARBONS

40%Reduction possible by 2030 with measures at a negative or break-even price

WHAT MORE IS NEEDED?

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Create long-term policy certainty for businesses and investors

1.

CAPTURING EXISTING & EMERGING OPPORTUNITIES REQUIRES THE U.S. TO:

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2.

CAPTURING EXISTING & EMERGING OPPORTUNITIES REQUIRES THE U.S. TO:

Drive continued technological development through direct public investment in R&D, public-private partnerships, competitions, etc.

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CAPTURING EXISTING & EMERGING OPPORTUNITIES REQUIRES THE U.S. TO:

Provide better conditions for deployment of new technologies

3.

PROVIDING BETTER CONDITIONS FORDEPLOYMENT OF NEW TECHNOLOGIES

Public support for low-carbon infrastructure

Eliminating regulatory barriers to investment

Helping investors access low-cost financing options

Address full cost of pollution

CONCLUSIONS

• We don’t have to choose between economic growth and averting climate change

• Sustained technological progress creates new opportunities

• Policies can overcome market barriers to facilitate investment and innovation

NICHOLAS BIANCO

SEEING IS BELIEVING: CREATING A NEW CLIMATE ECONOMY IN THE UNITED STATES

www.wri.org/seeingisbelieving