Tag Archives: climate change

With a Change in Workplace Comes Reflections on Society, Sustainability and a Balanced World

30 Nov

Source: http://www.flickr.com/photos/tsa1/5543988340/

You may have noticed that this space has been “dark” of late.  Why, since I’ve been gone and the world has spun round and round: the Occupy Wall Street launched (and perhaps corporate social responsibility entered the public eye), Kim Kardashian got married AND divorced, Libya fell, the St. Louis Cardinals won the World Series,  the debt ceiling crisis…well that’s still with us.   No, I didn’t disappear into the abyss after my Africa trip in August.  No, I didn’t burn out or give up.  Instead, I’ve moved forward a notch in the journey.

I’ve always maintained to family, friends and colleagues that “change is good”, and that it continues to drive us to continually improve on a personal and professional scale.  As I announced in early October to 800 of my closest personal friends and colleagues on LinkedIn, I recently started a full time position as Associate Director- Environment, Health & Safety (EHS) for Elan Pharmaceuticals, Inc. in South San Francisco, CA.    A long time client of mine, Elan is at the forefront of neuroscience based biotechnology.  Elan’s work includes research and development activities for neurodegenerative diseases, such as Alzheimer’s disease and Parkinson’s disease and autoimmune diseases, including multiple sclerosis.   I am proud to be aligned with a company that is focused on tackling some of the most troubling and challenging diseases of the mind and body, some of which have affected members of my own family.

With my days (and occasional evenings) fully committed with Elan, I’ll be placing ValueStream Performance Advisors on hiatus. Despite the change in venue, my enthusiasm and passion for heretical thinking, innovation, systems-based management and organizational sustainability, remains the same.  I’m happy with what ValueStream was able to accomplish through from 2009-2011 along with my many collaborators and clients

However, while my social media presence may change in the months and years ahead, I will nonetheless continue to be an ardent advocate for organizational sustainability, and proactive EHS compliance and management (which Elan has graciously endorsed as well).  I am truly appreciative of all of the support you, as readers have given me and continue to value the business relationships that we’ve established. To date, over 90,000 (!!!) visits have been made to this site to learn, share, argue and discuss key ideas and issues focused around sustainability.

Managing Change and Life’s Risky Balance

Like my change in workplace, you will also see some changes in the look and content of this site as well, starting with the banner photo.  This was a shot of the iconic acacia trees that I took while on a mini-safari this past summer in the Spioenkop Nature Reserve in the Drakensberg, KwaZulu Natal, South Africa.  Riding on horseback among the roaming wildlife (among them rhinos, giraffe, zebras and hartebeests) I was reminded of how critical it is that we all take a moment to reflect on the nature of humankind, how far we have come in a relatively short period of time on this planet, and how easily we have drifted away from lifes precious balance.    Not far from the ancient cave dwellings of the aboriginal San people, I realized how out of step humanity is with what’s around them, and what a ruinous course we may be on.  We are perhaps the species most at risk.  I also noted in my related post following that South Africa trip discussing environmental, health and safety, that ” companies must take care of basic HSE issues and lay a firm foundational framework for continual improvement first before they can progress along the sustainability journey.  …Regarding sustainability, it makes little sense force feeding a business approach that has little immediate bearing on managing organizations immediate risks.”  This is one of many reasons why I elected to refocus my career work on managing basic EHS issues to assure that a solid foundation is in place to support systematic sustainability efforts.

We are at a critical juncture on this fragile planet of ours.  We all have a moral imperative to passionately recast our “lot” in a much larger, infinitely complex global ecological system.  As Gregory Reggio so eloquently and powerfully captured in his epic 1982 film, “Koyaanisqatsi”, we live in a world…a life, out of balance.  How ironic that the United Nations COP17/CMP7 International Climate Conference has convened this week in  Durban, South Africa, to discuss  the most critical “out of balance” issue of our lifetime, climate change. …just a few short hours away from where the banner shot on this page was taken.

Humanity has the combined technical capability to use science, politics,  innovative technology and cultural awareness  to reshape the global natural, social and economic environment  to a point of balance and equity.   Do we have the collective wisdom to use that knowledge to achieve and maintain that balance?    I think we do, but like the sustainability journey we are on together,  it’ll take many steps and the political will to get there.

Please take a moment to add my new email to your contact list. I’ll retain dmeyer@valuestreamadvisors.com  address as a general professional networking address, or you can reach me here or at Elan — my new contact details are pasted below. And of course, you can still find me on Twitter and my commentary on Sustainable Business Forum, Sustainable Plant, Kinaxis Supply Chain Expert Community, and other media sites.

All the Best!

Dave R. Meyer, Associate Director- Environment, Health & Safety

Elan Pharmaceuticals Inc.

800 Gateway Blvd., South San Francisco, CA 94080

Direct: +1 650.877.7624

Email: david.meyer@elan.com

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Five Reasons that Sustainability and Supply Chain “Greening” Will Stick in 2011.

11 Jan

Hello, 2011.  Ten days in and already the supply chain chatter is in full force.  In a recent post, I noted how 2010 saw an incredibly marked increase in attention to supply chain ‘greening’ and sustainability (two different things I might add).  2011 looks to carry this trend to greater heights.  Why will there be increased traction in supply chain greening and sustainability?  For the following key reasons:

Economics- Contrary to popular belief, making the business case for making sustainability ‘operational” within an organizational supply chain is becoming easier, not harder.  With the availability of more data from ‘first movers’, procurement managers, environmental directors, design engineers, marketing/communications staff and operations managers (among others) are able now to make strong business cases in favor of looking at operations through a green lens. In addition, barriers to global trade brought on by increasing environmental regulations, more stringent restrictions on hazardous substances, greater emphasis on lean manufacturing, and increased supplier auditing and verification are creating the critical mass toward a new norm in supply chain management and expectations.  Seeking efficiencies in supply chain management and producing products while reducing waste continue to be a vital imperative in a recovering economy.  Those who neglect to critical evaluate their operations from a sustainability point of view this year will be cast to the side.

Climate Action- Supply chain sustainability is affecting shareholder value, company valuations and even due diligence during proposed mergers and acquisitions, the report said. It added that shareholder actions on sustainability performance and transparency were up 40% in 2009.  An article in the Environmental Leader last month described how climate change was playing an integral role in corporate supply chain decisions.  A very insightful report by Ernst and Young note that “As carbon pricing becomes established in various jurisdictions, organizations will face risks from compliance obligations.  This will impact cash management and liquidity, and carbon-intensive sectors may see an increase in the cost of capital.”  Still much work still remains to infuse green thinking in the C-Suite.   Little more than a third of those executives surveyed indicated that they were working directly with suppliers to reduce their carbon footprint, or have just started discussing climate change initiatives with their suppliers.  And now, the World Resources Institute is completing authoritative new supply chain and product lifecycle greenhouse gas protocols that will frame what’s expected to be a burgeoning wave of value chain sustainability accounting and reporting.   Stay tuned!

Disclosure and Accountability- As I’ve previously noted, supply chain management became widely recognized in 2010 as a key factor in measuring the true “sustainability” of an organizations practices and processes, and ultimately its product or service.   Increased attention will be paid this year on conflict minerals (because of the recent passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010), fair labor and other social aspects of sustainability, ongoing management of hazardous substances in toys and other consumer products, and looking at the supply chain to manage risks and liabilities from product recalls and other environmental impacts of products and services.  The concept of “materiality” in corporate social responsibility and product disclosure (FTC Green Guidelines) and SEC financial reporting is taking on new meaning from a supply chain perspective. ‘Materiality’ in terms of supply chain or network management will require more rigorous implementation and oversight of ethical business practices and practicing proactive environmental stewardship through-out a products value chain.  Suppliers play a key external role in managing the environmental, social or financial issues within the product value chain. I will treat the issue of sustainable supply chain management and materiality in an upcoming series. Watch for increased supplier requirements, third party verification (like ISO 14001, GS-GC1 and ULE 880) and more upstream accountability.

Innovation and Collaboration– the emergence of collaborative opportunities among larger manufacturers creates entry points in the market for smaller, intermediate products manufacturers as well.  Larger companies are identifying the critical supply chain partners that have the greatest product impact and begin seeking ways to collaboratively address the environmental and social footprint of their products through the value chain.   A new report even suggests that consumers will play a leading role behind greater supply chain collaboration.  The report, by CapGemini suggests that while suppliers are independently seeking more open, collaborative ways to move goods, consumers may be “… the trigger for an optimized collaborative supply chain flow: this next level of supply chain optimization is based on transparency and collaboration.”  More specifically, “Consumer awareness about sustainability demands a more CO2-friendly supply of products and services”, the report notes.

Life Cycle Design and End-of-Life Product Management– There are increased challenges that the waste management industry is facing, wider attention paid to greener packaging and increased emphasis on financial accountability is being felt in world markets.   Establishing a reverse logistics network that supports life cycle design, Extended Producer Responsibility (EPR), and “demanufacturing” processes will take on higher meaning in 2011.   According to a recent white paper issued by sustainability expert and colleague Gil Friend, EPR is a market-based approach that effectively assigns end-of-life responsibility and product stewardship to producers, requiring them to meet specific targets for material recycling and recovery, relative to the total amount of packaging that they have put into the marketplace. EPR helps to shift the responsibility for collecting packaging and end of life products from financially tapped out local government to producers.  But upstream of the manufacturing process, EPR success can be achieved through incentives for companies to take a closer look at how they design products for better end-of-life management (life cycle design).  Producers are not alone in addressing the social and ecological impacts of their products. Manufacturers must engage their supply networks to help drive EPR upstream; however, downstream customers play a role too. So producers and consumers should strive in 2011 to continue a dialogue about what to do to improve the profile of consumer products in a way that’s a win-win for all affected stakeholders.

So there it is from my view of the world. Five sustainability and supply chain challenges that were framed out in 2010 and look to stick in 2011.

Did I miss any?  Please chime in and share your thoughts.

The Quest for Personal & Organizational Sustainability- The Path to 2011 & Beyond

24 Dec

A great article was brought to my attention this past week by sustainability colleague and sage Gil Friend (@gfriend) this week.  The article by Peter Shallard talks about ditching New Years resolutions and reminding yourselves that you are on a journey- a quest.

“The holidays give you the window of opportunity to do this important thinking – not the date on the calendar. Take advantage of the time you’ve got to review the past and be grateful. Then, think of the future and be excited….Dismiss the date. Embrace the introspection.”- Peter Shallard

For individuals, organizations and communities, sustainability can be a walk in the forest, a chance meeting or a seminal event that jogs the mind, creating an urgent call to action that is transcendent.   For me at least, this shift towards sustainability has truly been a quest- sometimes a quiet, almost transparent change, other times a deliberate, “in your face” awakening. Either way, questing for sustainability involves embracing whole systems thinking that allows us to view ourselves and the business relationships that we have with others differently perhaps as a value chain of innovation and creativity.

My Journey

A few moments come to mind in my journey toward sustainability and my professional path (dates are approximate) that I’d like to share- come along with me please- read on:

Riding the Range (South Central Montana, 1964)- that's me on the left with my Dad & brother

1964: My family takes “The Great Western Road Trip”- one month in a loaded Ford Country Squire, exploring the wide open Western U.S., riding horses in Montana, exploring the Colorado back country, and marveling at Yellowstone National Parks natural wonders.  I vow to move west one day. I eventually do in 1977 to finish out my college education in natural resources ecology and management.

1969: Memories of recycling glass, plastic and newsprint with my Dad at the huge new recycling center in my hometown (Highland Park, Illinois).  I liked the shattered glass sounds.

1972-1976: Camping in Wisconsin’s Northwoods and making a conscious decision while on a “walk in the woods” to pursue a natural resources career.  I read Rachel Carson’s Silent Spring and Ed Abbeys Desert Solitaire and am changed forever.

1982: I developed and unveiled a groundbreaking employee environmental training program that changed the way of thinking for hundreds of coal miners in Utah.  Their changes in behavior and proactive efforts led to a stellar number 1 environmental compliance ranking and state-wide recognition.

1983: I watched the groundbreaking movie Koyaanisqatsi: Life out of Balance while I was working for a coal mine in New Mexico.  As I saw smoking, exposed coal seams from the surface mining activities, I began questioning if who I was working for was contradictory to my belief in natural systems, conservation and environmental protection.  So I reached out to Amory and Hunter Lovins (@hlovins) at the newly founded Rocky Mountain Institute for advice on how to manage my moral and ethical environmental center.  Their sage wisdom enabled me to continue my environmental work.  I embraced  internal change management, policy development, environmental awareness and education,  advocacy for proactive compliance management and supporting land conservation and  site restoration.

Emergency Site Cleanup-Utah, 1986

1984-1990: I called this period ” the Tyvek Years”.  I had numerous transcendent experiences conducting high profile federal and state-led hazardous waste site investigations and emergency cleanups.  It was sometimes very nasty work.  The experiences left me wondering how to prevent future environmental calamities like the ones I was helping to clean up.  This  led me toward developing proactive compliance and environmental management frameworks for clients and take a more active role in community planning groups.

1990: Captain Planet and the Planeteers debuts on Turner Broadcasting.  The Captain Planet Foundation still exists to support hands-on environmental projects for youth in grades K-12.

Mr. Science goes to pre-school for Show-and-Tell (1991)

1991: My four-year old son brings me to pre-school as his show and tell project.  He introduces me as follows: “This is my Dad- he saves the Planet”.  What a better way to spend the lunch hours in enlightening the next generation about environmental issues and the wonders of science.

1993:  I participated with an international team in a solid waste facility siting project in Barbados.  The political process trumps good engineering and science, and demonstrates lack of value placed on natural parklands and sustainable development.  The government ignores all technical recommendations made by the team following years of study and eventually sites the project in the middle of a proposed national park.  Really!?  I leave the island tanned but disillusioned and even more committed to advance science in effective sustainable development policy-making.

1995: I complete my Masters degree in Environmental Policy and Management as a charter member of University of Denvers groundbreaking and pioneering post secondary education curriculum.  My Capstone Project, an “Environmental Policy Toolkit” becomes available to hundreds of small to large businesses through the Denver Metro Chamber of Commerce.   While the younger grads are passing alcohol filled bota bags at graduation ceremonies, my professional colleagues and I are passing “Tums” around!  My son gets to see his Dad who “saves the planet” walk up to accept his diploma- that was cool.

1996: Recalling my talk in 1983 with the Lovins’, I was confronted by an old time miner while working at my company’s booth at a mining expo in Spokane.  He saw that I worked for an environmental services firm and said: “so I see you’re an environmentalist- so, are you ‘fer or ‘agin mining!?”  I answered ” I’m ‘fer environmentally responsible mining”.  That stumped him but he said he’d “accept that” answer.  I gave him trinkets for his five grandkids, and he left happy.

1998: I had the pleasure of planning and developing several successful and industry groundbreaking ISO 14001 environmental management system (EMS) certifications (the first of more than three dozen I have installed since).  Bubble shattered in 1999 by a retired Washington state Senator, who quipped to me on a Washington D.C. street that environmental policy is not science-based.  I am dumbfounded (post script: last week the Obama administration finally released its  long awaited “scientific integrity” policy statement).

City of San Diego Water Department ISO 14001 Champions (I'm in the 3rd row)

1998-2004: The public sector years.  During this time I assisted major water, wastewater and solid waste utilities in implementing award winning ISO 14001 EMS’s, improving operations and saving taxpayers millions in real and avoided environmental liabilities.   I knew I could flush, drink water and recycle in confidence knowing that my city operations were “doing the right thing”.  After my latest utility client successfully received its ISO 14001 certification in 2004, one of  the organizations chief protagonists quietly pulled me aside to thank me “for getting us to do what they would not have done themselves”.

2010: I finally seek out and find the link between my Jewish identity and environmentalism.  I become a Bar Mitzvah and find that the Torah and Jewish scholars have taught extensively about environmentalism over the past 5771 years- guess I was a little late to the party!.  Many Talmudic themes specifically center around the concept of “sustainability”. Here in the U.S., the Coalition on the Environment and Jewish Life (COEJL) has helped tens of thousands of Jews make a connection between Judaism and the environment.  There are even green tips to have an ‘eco-kosher’ New Year.

A quest is superior to a goal because the journey itself is rewarding. It’s an epic ongoing voyage which will immediately go down in folklore as a story worth telling.  Ditch your goals in favor of choosing the journey that you want to go on. Pick a quest that will necessitate the accomplishment of your goals along the way.

So that’s my story….or at least some of the highlights.  There’s more to share but that’s perhaps another chapter in this journey.  I hope you found this first story worth the telling.  As you can see, sometimes its the little things that (when I take the time to think about it) have slowly moved me forward, or sometimes the events have been larger and have catapulted me further .

A Call to Action

Mr. Shallards piece distills preparation for a successful quest as a series of four essential steps.

…focus on equipping yourself for your journey.  Ask yourself:

  • What kind of person do I need to be to be the hero in this story?
  • What beliefs and values do I need to hold?
  • What capabilities do I need to develop?
  • What habits and behaviors do I need to master?

The suggestions by Mr. Shallard can easily be adapted to an organizational  and supply chain level when considering best methods to transform a “business-as-usual” organization into a sustainability-minded one, or instill changes in policy and implementation at the community level.   A few other ideas to turn your organization toward a “top-line”, first mover one can be found here as well.

I can’t begin to reel off the names all of the family, friends, colleagues, teachers and organizations that have made such a huge difference in my quest  of the past 50 plus years on this planet.  Suffice it to say that it takes many wings to fly in this world and I am indebted to each and every one of you who’ve made a small or large contribution to my quest along the way.   I will thank Gil Friend though for bringing Mr. Ballards perspective to my attention.   Meantime, I’ll just simply say that if you are reading this, I truly appreciate your continued support and interest in my ideas and experiences this past year.

I’d love to hear your stories too and hope you’ll share them in the comments below!

Here’s to a very happy, health, sustainable & prosperous 2011!

Paz- Dave

Solving the Sustainable Sourcing & Green Supply Chain Management Puzzle: A 2010 Rewind

22 Dec

2010 is nearly ‘in the books’, and I vowed that I would not fall prey to the endless lists and recounting of annual accomplishments.  However, never in my 30 years in the sustainability and environmental business has there been so much attention paid to the influence of supply chain management and its role in the greening of business.  2010 has been truly remarkable in a number of key areas of green supply chain management from a number of perspectives, including: policy and governance, operations and optimization, guidance and standardization and metrics.  The green pieces of the supply chain and sustainability puzzle appear to be nicely falling into place.  Key themes that I can glean from this most incredible year are:

Big Industry Movers and Government Green up the Supply Chain- over the past year, observers and practitioners read nearly weekly announcements of yet another major manufacturer or retailer setting the bar for greener supply chain management.  With a much greater focus on monitoring, measurement and verification, Wal-Mart, IBM, Proctor and Gamble, Kaiser Permanente, Puma, Ford, Intel, Pepsi, Kimberly-Clark, Unilever, Johnson & Johnson, Herman Miller among many others made a big splash by announcing serious efforts to engage, collaborate and track supplier/vendor sustainability efforts.  Central to each of these organizations is how vendors impact the large companies carbon footprint, in addition to other major value chain concerns such as material and water resource use, and waste management.  Even government agencies here in the U.S. (General Services Administration) and abroad (DEFRA in Britain) have set green standards and guidelines for federal procurement.  More and more companies are jumping on the green train and the recognition is flowing wide and deep.

Supply Chain Meets Corporate Social Responsibility- Adding to many companies existing concerns over environmental protection, large products manufacturers such as Nestle, Corporate Express, Danisco, Starbucks, Unilever and the apparel industry stepped up in a big way to address human rights, fair labor and sustainable development in areas in which they operate throughout the world. Each of these companies and others like WalMart have embraced the “whole systems” approach that I’ve previously written about in this space and that underscore transparency and collaboration the “value” in the supply chain.  Each company recognizes that to be a truly sustainable organization, it must reach deep beyond its four walls to its suppliers and customers.

Emerging Sustainability Standards Embrace Supply Chain Management- This year, the international Organization for Standardization (ISO) unveiled its ISO 26000 Corporate Social Responsibility guidance document.  In addition, two prominent organizations, UL Environment and Green Seal unveiled and vetted two sustainability focused product (GS-C1) and organization (ULE 880) standards, both of which may markedly affect supply chain behaviors in the future.  Central to all these standards and guidelines is how important supply networks are in supporting the entire product ‘value chain”, not only from an environmental perspective, but from a social and community focused perspective.

Transparency and Collaboration Take on a Green Hue– in April, I had the honor of addressing C-suite supply chain managers and practitioners at the Aberdeen Supply Chain Summit in San Francisco.  A central theme of this conference involved the critical importance of collaboration throughout supply networks to enhance efficiencies and optimize value.   My talk (linked here) focused on how the most successful greening efforts in supply chains (like those used by Unilever, Herman Miller and Hewlett Packard) were based on value creation through the sharing of intelligence and know-how about environmental and emerging regulatory issues and emerging technologies.  Suppliers and customers can collaboratively strengthen each other’s performance and distributing cost of ownership.  Practitioners have found “reciprocal value” through enhanced product differentiation, reputation management and customer loyalty. And the continuing Wikileaks controversy is boldly reminding the business world that accountability and transparency and corporate social responsibility is vital and may even be a game changer in how products and services are made and delivered to the global marketplace.

Logistics Turning to Greener Solutionsnumerous studies and surveys conducted by peer organizations this year underscored how sustainability among carriers and shippers was central in the minds of most logistics CEO’s.  Whether it was by land, air or sea, shipping and logistics embraced sustainability as a key element of business planning and strategy in 2010.  I also had the pleasure of visiting briefly with FedEx’s Vice President, Environmental Affairs & Sustainability (@Mitch_Jackson) this fall and learned of the myriad of operational innovations and sustainability focused metrics that the company is tracking throughout its operations and maintenance activities. And UPS even mentioned its efforts to manage its carbon footprint in its catchy new brand campaign “I Love Logistics”.  Finally logistics companies are partnering with manufacturing to support reverse logistics efforts designed to manage end of life or post consumer uses of products or resources.

Lean Manufacturing Meets Green Supply Chain as manufacturing continues its slow rebound from the Great Recession, companies are recommitting themselves to implementing less wasteful production as a way to leverage cost and enhance savings.  Parallel efforts are in play also to incorporate more environmentally sustainable work practices and processes.  Enhancing this effort to lean the product value chain is recognition of upstream suppliers and vendors work practices and possible impacts they may have on manufacturing outputs. Lean efforts have been demonstrated to yield substantial environmental benefits (pollution prevention, waste reduction and reuse opportunities) as well as leverage compliance issues.  More and more, companies are exploring the overlaps and synergies between quality-based lean  and environmentally based ‘green’ initiatives.

Supply Chain and Climate Action Rounding out the year, the climate summit in Cancun (COP16) produced modest results (given the low expectations all around, what was accomplished looked huge by comparison to Copenhagen).  Activities at COP16, especially by the private sector were geared toward identifying key linkages between supply chain sustainability and climate change.   Perhaps the biggest news to emerge from the two-week conference was an effort by apparel manufacturers to enhance supply chain social responsibility and an internet database that will list the energy efficiency of most ocean-going vessels, in a scheme designed to reduce shipping emissions by nearly 25%.  As I noted, this effort is important not only because it recognizes shipping and transport as a backbone” of commerce (as other industry sponsored programs have recognized already), but because of the value of transparency in enhancing supply chain efficiencies.

Looking Forward to 2011

Yes indeed, it’s been a big year for supply chain management and its intersection with sustainability.  I see little for 2011 that will slow down this upward green trajectory, and naturally I am glad.  I am glad that more businesses “get it” and don’t want to be viewed as laggards in leaning towards a business ethic that values sustainability and socially influenced governance. I am glad that more companies are seeking out green innovation through new technologies and being ‘first movers’ in their respective business spaces.

And I am glad that you (my readers) and I am here to be part of the change.

Climate Change, the Clean Air Act and the Political Sandbox

13 Mar

Yesterday, climate change experts from throughout the world wrapped up three day conference on climate change in Copenhagen.  At the conference British economist Nicholas Stern (who authored a major British government report detailing the cost of climate change) told hose assembled that the global recession presents an opportunity to build a more energy-efficient economy.

“Coming out of this we have got to lay the foundations for a low-carbon growth, which is going to be like the railways, like the electricity, like the motorcars, this is going to be over the next two, three decades the big driver in investment,” Stern said.

What’s our tattered economy to do?  In this same week, the U.S. Environmental Protection Agency proposed the first comprehensive national system for reporting emissions of carbon dioxide and other greenhouse gases produced by major sources in the United States.  EPA is developing this rule under the authority of the Clean Air Act (CAA).  Draconian perhaps?  Yes indeed, as I will opine in a moment.  It is my humble view that decades of economics based incentives to reduce air emissions appear to be about to be thrown under the bus.  And while the focus of the attention is on more energy intensive sectors such as cement production, iron and steel production, and electricity generation, the net is being cast much wider and may inadvertently capture less polluting industries and small businesses, impacting a wider sector of the economy which may be unnecessarily burdened.

So what’s the problem?  Congress appears to be the problem. While a number of states and regional initiatives are preparing their patchwork of GHG cap and trade frameworks and legislation (some like in Oregon and Washington appearing to be in a death spiral), Congress is sitting on its hands and all too slowly is slogging away at bringing meaningful and balanced cap and trade legislation to the floors of Congress.  Further, President Obama’s appears to be burdening climate change legislation with extra baggage, and this is not making the situation any better. The 2010 budget plan calls for using a carbon cap-and-trade system to raise as much as $646 billion in new revenue for the government between 2012 and 2020.  Much of the funds would go to subsidize clean technology research.  All good it seems.  Until one digs into the details.  According to the budget plan, most of the money raised would go toward a refundable tax credit of up to $400 for working individuals and $800 for working families, subject to income limits.  While I am all for social reinvestment, this makes reaching consensus on climate change more politically charged.

The President may be entering dangerous waters by putting economic renewal too heavily on the back of cap and trade legislation and in mixing social agenda issues in as well.  In fact, it’s the Democrats that are now putting up such a big fuss.  As noted in the Wall Street Journal (blog) http://blogs.wsj.com/environmentalcapital/2009/03/12/cap-and-horse-trade-obamas-uphill-battle-for-climate-bill/, the so called “Blue Dog” Democrats worry that the Presidents blueprint for tackling climate change will unduly burden Rust Belt states by raising energy costs for consumers and manufacturers. Many Democrats are upset that the revenue will be used for generic tax cuts and to help fund other programs, rather than for specific help to cushion the blow of increased climate regulation.

Indeed, what I hear in the great Northwest among business leaders appears to echo those in the beltway, who are concerned about the impact of federal or state cap and trade legislation on local economies.  But consider the alternative…the EPA way.

Many argue that the U.S. Supreme Court’s 2007 decision, Massachusetts v. EPA (which affirmed that carbon dioxide emissions are a pollutant as defined by the CAA) is the leverage needed to allow for carbon emissions to be regulated by the EPA.  That is true, because the EPA was essentially forced by the Massachusetts v. EPA decision to proceed with developing greenhouse gas regulations under the Clean Air Act unless or until Congress acted.  Many argue that the EPA is in the best position to manage a federal cap and trade program and integrate seamlessly all of the many regional and state initiatives currently in process.  But one can only imagine the years of litigation that will result from imposing new, wide reaching rules.  Despite the relative success of the CAA over the past 30 years, it’s a relatively rigid framework, whereas market-based systems like Cap and Trade may be more successful in the long run at controlling costs and spurring innovation through incentives and regulatory flexibility. But now the President appears to have convoluted the political process by padding the legislation with social agenda items.

Scientists assembled at this week’s climate conference have restated clearly that the urgency of the current situation cannot be overemphasized.  Climate change appears to be accelerating at a rate beyond previous Intergovernmental Panel on Climate Change (IPCC) expectations, and that the window for a timely response is closing quickly. The dire direction in which our world appears to headed requires a dual pronged strategy that provides a policy pathway that will begin to reduce emissions immediately, and a political pathway that avoids continued gridlock, as is being witnessed in Washington this week.

Is everyone able to play in the same sandbox? Do it for our planets sake.