Why Act Now?
WHY ARE CORPORATIONS AND INDUSTRY ACTING NOW?
Regulation is here and legislation is on its way.
On December 7, 2009, The United Stated Environmental Protection Agency (EPA) announced that the six greenhouse gases “threaten the public health and welfare of current and future generations.” Beginning in January 1, 2010, high greenhouse gas emitting sectors and organizations will be required to report their emissions under the EPA’s Mandatory Reporting of Greenhouse Gases Rule.
At the core of compliance, a comprehensive greenhouse gas inventory will be required to serve as a baseline by which to measure reductions and demonstrate compliance. Some of the covered sectors include:
- Electricity Utilities
- Ammonia Manufacturing Facilities
- Pulp and Paper Manufacturing
- Manufacturers of lumber products
- Landfills
- Beef cattle feedlots
- Dairy cattle and milk production facilities
- Suppliers of Natural Gas
Is my business covered by the EPA reporting rule?
Does my business emit more than 25,000 metric tons of CO2e?
What do I need to do to meet the reporting mandate?
These are questions you need to know now to prepare your business for federal compliance. Our project team will help you answer these questions and has the experience and tools to quantify your baseline emissions.
While regulation is here, national climate change policy is eminent with a pending legislation in the Senate. The bill that passes will most likely involve a national cap-and-trade policy that will place on a ceiling on how much industries and corporations can emit. Heavy emitters need to begin devising cost-effective strategies to lower emissions or face penalties.
To date, these organizations have participated in voluntary climate change programs (e.g., Climate Leaders, The Climate Registry, and USDOE 1605b) that require annual greenhouse gas inventories. Companies do inventories not only to understand their liabilities associated with their emissions, but also to show corporate social responsibility to their shareholders and consumers. In addition, many companies are responding to the growing demand for green products by “eco-labeling” as a way to set their product apart from their competitors.
WHY ARE LANDOWNERS ACTING NOW?
While landowners are not anticipated to be a covered sector in climate policy, landowners are still interested in understanding their emissions for the same reasons as corporations are interested (namely to show in corporate social responsibility). Pertinent greenhouse gas emissions sources include cattle (i.e., enteric fermentation and manure); land applications (i.e., nitrogen fertilizer, lime, and urea); and emissions associated with land use and land use conversions (i.e., agriculture, forestry, grasslands, and development). In addition, landowners of forests and farms are in a position to be a part of the solution, namely to increase greenhouse gas removals through increased carbon sequestered in forests, grasslands, and soils. These actions will provide additional revenue streams to foresters and farmers.
WHY ARE MUNICIPALITIES ACTING NOW?
As of January 2009, 911 U.S. Mayor’s representing over 82 million Americans have signed the Mayor’s Climate Protection Agreement. By signing, the Mayor commits to Three Actions:
- Meet or beat Kyoto Protocol targets (7% of 1990 levels by 2012)
- Urge state and federal government to also meet or beat Kyoto Protocol targets
- Urge congress to pass legislation for national emissions trading system
In order to reduce emissions, a city must determine their baseline, which means they must conduct a greenhouse gas inventory. The goal should not be to just inventory, but rather the inventory should be used to identify and model reduction.
 2008 State of Voluntary Carbon Markets >>
Many organizations are taking action to reduce greenhouse gas emissions and offsetting their emissions by purchasing carbon credits. ECO2ASSET SOLUTIONS is often asked why companies are voluntarily reducing greenhouse gas emissions and buying carbon offsets when they are not required to do so by law. According to a report published by Ecosystem Marketplace and New Carbon Finance, the top reasons include corporate social responsibility, public relations, and to demonstrate to their customers that their product is “greener” than their competition.
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