The Trouble With CERES, BICEP, and the Way Forward

The Trouble with CERES, BICEP, and the Way Forward (audio)

Back in the fall of 1989, CERES announced the creation of the Ceres Principles, a ten-point code of corporate environmental conduct to be publicly endorsed by companies as an environmental mission statement or ethic. Today, the Waxman/Markey Bill brings together energy efficiency, renewable energy, and cutting greenhouse gases. … good for business and consumers. Makes it easier to move toward a clean energy economy.

BUT the CERES principles fall short in some very important ways.

  1. Adherence to the CERES Principles is voluntary; not mandatory.
  2. The “CERES Principles” are just that – principles. They are not goals.
  3. The government must fully support them, and back them, and push them, and enforce them.
  4. While there are milestones in the 20 year history the Ceres Principles, there are no dead-lines for the future.

And we need to act now. As Gore noted, “We’re borrowing money from China to buy oil from the Persian Gulf to burn it in ways that destroy the planet. …that’s got to change. … Enough wind blows through the Midwest corridor every day to meet 100 percent of US electricity demand. … Enough solar energy falls on the surface of the earth every 40 minutes to meet 100 percent of the entire world’s energy needs for a full year.

Here are the details.

First, the  good news.

The Waxman/Markey Bill, according to CERES, lays a path that “brings together energy efficiency, renewable energy, and cutting greenhouse gases. … good for business and consumers. Makes it easier to move toward a clean energy economy.”

In the US, 643 new Insurance Initiatives are now offered for green buildings, renewable energy, carbon risk management, to tackle climate change and weather related losses.

The National Association of Insurance Commissioners, NAIC, on March 17, 2009, required disclosure on the risks posed by climate change to the insurance industry – the world’s largest industry. The reason: the potential impact of climate change on insurer insolvency will effect the availability and affordability of insurance.

CERES, back in the fall of 1989, announced the creation of the Ceres Principles, a ten-point code of corporate environmental conduct to be publicly endorsed by companies as an environmental mission statement or ethic.

These are good, and important:

  1. Protection of the Biosphere To reduce and make continual progress toward eliminating the release of any substance that may cause environmental damage to the air, water, or the earth or its inhabitants. To safeguard all habitats affected by our operations and will protect open spaces and wilderness, while preserving biodiversity.
  2. Sustainable Use of Natural Resources To make sustainable use of renewable natural resources, such as water, soils and forests. To conserve non-renewable natural resources through efficient use and careful planning.
  3. Reduction of Wastes To reduce and where possible eliminate waste through source reduction and recycling. All waste will be handled and disposed of through safe and responsible methods.
  4. Energy Conservation To conserve energy and improve the energy efficiency of our internal operations and of the goods and services we sell. We will make every effort to use environmentally safe and sustainable energy sources.
  5. Risk Reduction To reduce risk to minimize the environmental, health and safety risks to our employees and the communities in which we operate and to be prepared for emergencies. If FEMA adhered to the CERES Principles, they would have responded differently to Katrina.
  6. Safe Products and Services
    To reduce and where possible eliminate the use, manufacture or sale of products and services that cause environmental damage or health or safety hazards. If FEMA adhered to the CERES Principles, they wouldn’t have put people in emergency shelters that reeked of formaldehyde.
  7. Environmental Restoration We will promptly and responsibly correct conditions we have caused that endanger health, safety or the environment. To redress injuries to restore the environment.
  8. Informing the Public We will inform in a timely manner everyone who may be affected by conditions caused by our company that might endanger health, safety or the environment. We will not take any action against employees for reporting dangerous incidents or conditions to management or to appropriate authorities. If the NRC adhered to the CERES Principles they wouldn’t fire whistle blowers like Dennis Zannoni.
  9. Management Commitment to implement these Principles to ensures that the Board of Directors and Chief Executive Officer are fully informed and are fully responsible for environmental policy.
  10. We will conduct an Annual Self-Evaluation of our progress and make our CERES report available to the public.

BUT the CERES principles fall short in some very important ways.

  1. Adherence to the CERES Principles is voluntary; not mandatory.
  2. The “CERES Principles” are just that – principles. They are not goals.
  3. The government must fully support them, and back them, and push them, and enforce them.
  4. While there are milestones in the 20 year history the Ceres Principles, there are no dead-lines for the future.

The next step was to turn the principles in goals. CERES did this with BICEP, Business for Innovative Climate and Energy Policy, on the web www.ceres.org/bicep.

BICEP Goals

  1. Reduce greenhouse gas emissions to 80 % below 1990 levels by 2050, and 25 % by 2020.
  2. The United States must establish a cap-and-trade system which incorporates a 100 percent auction of allowances, promotes energy efficiency, and accelerates clean energy technologies that help achieve the targets mentioned above at the lowest possible cost.
  3. To Establish aggressive energy efficiency policies — including, but not limited to, stronger building codes, appliance standards, vehicle fuel efficiency standards, and tax incentives,
  4. To Encourage transportation for a clean energy economy, utilizing standards and incentives, to promote efficient vehicles, plug-in electric hybrids, low-carbon fuels.
  5. Increase investment in Clean Energy technology, renewables, energy efficiency; and carbon capture and storage technology while eliminating subsidies for fossil fuel industries. Altho this seems to be contradictory. You can’t eliminate subsidies for the fossil fuel industry and push for carbon capture and storage technology.
  6. Ensure public investment in new jobs, “green collar” jobs in low-income communities and communities vulnerable to economic impact from climate change.
  7. Adopt a renewable energy portfolio that requires 20 percent of electricity be generated from renewable energy sources by 2020, and 30 percent by 2030.
  8. To Capture and store carbon emissions from coal-fired power, the U.S. government should (i) limit the construction of new coal-fired power plants to those that capture and store carbon emissions, (ii) incentivize the installation of best available emissions control technologies on new and existing plants, and (iii) require carbon capture and storage capability in all existing plants by 2030.

However, 2030 is 21 years away, and 2050 is 41 years away. We can’t wait another 41 or even 21 years. We must act now.

In July, 2008, Al Gore, Nobel Laureate, Vice President, winner of the popular vote in the 2000 election for the office of the President of the United States, challenged the citizens of the United States to “Repower America” to be “Clean and Green by 2018.” I agree.

Given the current economic crisis it may be reasonable to ask if we can afford to invest the time and resources that I am proposing. And yet, given the climate crisis and the prospect for destruction of what I call the “homosphere,” i.e. the biosphere which forms the foundation of human civilization, I believe that we can not afford NOT to invest the time and resources to change.

  1. We MUST Reduce greenhouse gas emissions to 80 percent below 1990 levels by 2025, not 2050. The United States must achieve a reduction in greenhouse gas emissions of at least 25 percent reduction below 1990 levels by 2018. and 80 percent below 1990 levels by 2025.
  2. We MUST Establish a cap-and-trade system – by 2011.
  3. We MUST Establish aggressive energy efficiency policies. Stronger building codes, appliance standards, vehicle fuel efficiency standards, and tax incentives, and the establishment of a nationwide energy efficiency resource standard (EERS) — to promote a doubling of our historic rate of energy efficiency improvement every 4 years. The national building code must be revised in 2009, and every year.
  4. Encourage transportation for a clean energy economy:  Every car and light truck must be a plug in hybrid running biodiesel by 2020. The Toyota Prius gets 45 to 50 mpg – and the first Prius was available in 2001. Every car on the road should get 50 to 100 mpg. These vehicles must be available beginning 2012.
    • Whoever makes them will lead the industry for the next 20 or 30 years
    • It’s not what’s good for GM that’s good for America,
    • But what’s good for America is good for the auto industry
    • If it’s still around.
  5. The United States must ensure public investment in energy efficiency – every school in the nation must have a solar roof. And there should be wind farms up and down the coasts. Because when the sun shines those roofs create power. And there’s no fuel so the power is free, once the systems are paid for. No external costs: No arsenic, no mercury, no radioactive wastes, no carbon.
  6. New jobs: Federal climate change legislation must create a stimulus for job growth and increased productivity through mobilization and investment in climate-based solutions.  Special attention should be given to establishing “green collar” jobs in low-income communities and communities vulnerable to economic impact from climate change, communities from Florida to Maine, from New Orleans, to Deluth, from Texas to California, and Alaska.
  7. The renewable portfolio policy Must require that nationally 40 percent of electricity be generated from renewable energy sources by 2018and 100% by 2025. We could do 100% by 2018, if we really wanted to.
  8. As far as Capture and carbon sequestration from coal – Carbon sequestration technology doesn’t exist. The best way to sequester carbon is to leave it under ground, or, in the long term, plant trees. It might be a good idea to use a second mortgage to finance a rooftop solar energy system. But it’s a bad idea to use the equity in your home to finance a gambling binge in Atlantic City or Vegas. We can’t mortgage the future on a bet on technology that doesn’t exist.

Solar, wind, geothermal, and biodiesel technology, are here, ready.

As Gore said, “We’re borrowing money from China to buy oil from the Persian Gulf to burn it in ways that destroy the planet. …That’s got to change. … Enough wind blows through the Midwest corridor every day to meet 100 percent of US electricity demand. … Enough solar energy falls on the surface of the earth every 40 minutes to meet 100 percent of the entire world’s energy needs for a full year.