National Energy Policy and Climate Change

National Audubon Society
Funding from the Hewlett Foundation enabled the National Audubon Society to build strong public support for climate and clean energy policies in Montana, Missouri, and Ohio. Photo courtesy of the National Oceanic and Atmospheric Administration, US Department of Commerce.

The Foundation is committed to helping solve the greatest challenge of our generation—global climate change. This is an international problem, and as one of the world’s largest emitters of greenhouse gases, the United States must lead the way.

The Foundation therefore supports organizations that are developing national policies to meet our energy and transportation needs while reducing carbon emissions. We have also supported a host of international efforts to help other nations address the problem.

In 2007, we made energy and climate change grants in four strategic areas:

Supporting a responsible U.S. National Energy Policy. The momentum toward an enlightened U.S. national energy policy is unmistakable. In late 2007, President Bush signed an energy bill that by 2030 will reduce by 800 million tons the amount of carbon dioxide emitted. It is the largest energy-saving measure in U.S. history. Our grantees supported this landmark action by providing the outstanding technical work underpinning its key provisions, and by working with dozens of constituencies—from religious leaders to military officials—to build support for a strong energy efficiency policy.

Supporting International Climate Change Policy. China and Mexico have announced ambitious plans for dealing with climate change, and Brazil is not far behind; the latter’s plan will deal with the serious problem of higher carbon emissions caused by deforestation in the Amazon. Foundation grantees are working closely with teams in each of these countries to further refine strategies to deal with global climate change.

In a less well known but no less important development, the Foundation also funded work to increase the climate benefits of the Montreal Protocol, the 1987 agreement to repair the hole in the ozone layer by reducing the use of commercial chemicals that deplete it. Based on data from a recent study that shows the treaty will have avoided the creation of nearly eleven gigatons of carbon dioxide a year by 2010, several countries have proposed that the treaty be adjusted to maximize climate change benefits. In September 2007, the Montreal signatories agreed to make the necessary adjustments to the Protocol to maximize the treaty’s carbon reduction potential. Initial estimates show this landmark agreement will result in a reduction of up to 25 gigatons of carbon dioxide equivalent by 2030.

Promoting Sustainable City Development in China. China’s rapid development is having a profound effect on global climate. Unless China incorporates sophisticated city planning and design, energy efficiency, and enforceable regulations, the possibility of significantly reducing the threat of global warming will be slim.

In 2007, the Foundation launched the China Sustainable Cities Initiative, which provides technical assistance to help China on the path to sustainable development. The first round of projects is designed to help with quality public transportation, green building design, and sustainable urban development.

Encouraging clean transportation. The Foundation continues working to ensure that transportation policies around the world call for the most advanced, cleanest technologies available for vehicle construction and encourage public transportation use as a first choice. The result will be a reduction in pollution and congestion—both of which are a drag on the environment and the world economy.

The U.S. Supreme Court’s 2007 decision that the Environmental Protection Agency has the jurisdiction to regulate carbon dioxide as a pollutant was a watershed event, brought about with the help of Foundation grantees—especially the Natural Resources Defense Council and the Sierra Club.

In 2007, California adopted a low-carbon fuels standard that required reductions in carbon throughout the entire production chain—the first of its kind anywhere in the world. Foundation grantees helped generate these policies, with the International Council on Clean Transportation, a key grantee, supplying technical, economic, and regulatory analyses.

While the Environment Program continues to support low-carbon fuels, we have had to adjust our support for biofuels over the past year. Since 2002, the Program has supported the development of U.S. biofuels for two main reasons. First, biofuels are considered carbon neutral—absorbing the same amount of carbon while growing as they release when burned—making them a clean alternative to traditional fuels. Second, because these crops grow in the United States, they represent a real opportunity to reduce dependence on foreign oil. However, recent research has called into question the true carbon balance of biofuels—especially corn ethanol. Converting unused lands into fuel crops may release a significant amount of carbon, creating a “carbon debt” even before biofuel crops begin to grow. There are also growing concerns that shifting food crops to fuel production may induce indirect land use changes that, in aggregate, increase global carbon emissions. Finally, the shift of corn crops away from the food supply chain may have contributed to a global spike in food prices. Given these unanticipated complications with biofuels, and the uncertainties they generate, the Program is taking a step back to invest in additional science to understand the true carbon impact of biofuels. We are also working with the Global Development Program to ensure that future fuel stocks do not adversely affect world food supplies.

Chinese leaders set out to retrofit 2,000 buses with high-quality pollution filters and build two more Bus Rapid Transit lines in time for the 2008 Olympics. China also adopted strong emissions standards nationwide, and large cities like Beijing and Guangzhou expect to adopt even stricter standards in the near future. Grant support to The Energy Foundation helped make these gains possible.

A reorganization of Brazil’s Environment Ministry delayed progress on clean vehicles and fuels in that country. The national oil company, Petrobras, and Brazilian auto manufacturers expressed the need to delay new tighter emissions and fuel quality standards. Grantees spent much of the year arguing to keep the current timeline by demonstrating the ill-effects of vehicle emissions on human health and conducting a poll showing that Brazilians are concerned about vehicle pollution. Grantees are now working with regulators to resolve the impasse.

National Energy Policy and Climate Change Grants authorized in 2007.

2008 Goals
 
  • Provide technical support for the development of U.S. climate change policy
  • Increase the number of economic sectors participating in cap-and-trade programs that create financial incentives for emission reductions
  • Continue support of California’s greenhouse gas standards for automobiles
  • Evaluate all Bus Rapid Transit grants in Mexico, Brazil, and China
  • Promote clean vehicle and fuel standards in Mexico, Brazil, and China
  • Support policies that reduce the use of private vehicles and increase funding for public transportation
  • Promote a federal low-carbon fuels standard in the United States

For more information, please visit the Foundation Web site.