Saturday, October 30, 2010

Prop 23 & Green Jobs

A friend sent me a recent Opinion piece from the Wall St. Journal titled "Prop 23 and the Green Jobs Myth" by T.J. Rodgers - founder and CEO of Cypress Semiconductor, which acquired SunPower Corp - one of our country's largest solar companies - in 2003.

Image source: Solar Richmond,
In the piece, Rodgers supports the fossil-fuel industry-backed Prop 23 by essentially trying to tie it to California's economic troubles, and claiming it will hurt job growth.  I can appreciate the position that putting a direct price on pollution can look like an added cost, but I hold that it's correcting a market distortion - we are and will continue to pay the costs of extracting and burning fossil fuels whether we do so directly (by pricing carbon) or indirectly (through healthcare, destruction of personal property & infrastructure, loss of life, undermining ecosystem services, etc.).  

Image source: The 6th Extinction
Attempts to tie a direct line from AB 32 (California's climate change legislation) to the state's current economic woes are disingenuous. First, the law hasn't gone into effect yet.  Second, the initial targets of AB 32 are so easy to meet, that the costs will be more than offset by cost savings from efficiency upgrades and better processes.  I know Econ 101 tells us that business would already have realized all of those cost-savings if the potential was there, but businesses are run by people, and as we know people aren't always perfect - the vast majority of businesses have huge unrealized opportunities for cost-savings with little or no upfront investment.

For example, EDF's Climate Corps program hires MBA students to help big companies identify efficiency opportunities - this year 50 interns generated $350 million in savings for these companies. Starting to send the price signal to the correct source - which AB 32 will do, and which Prop 23 is trying to stop - will accelerate these efforts and further innovations to make our economy more efficient, more effective, and more competitive. 
At Cisco Systems, fellow Emily Reyna developed a plan
for installing energy-saving devices in R&D labs that
could save an estimated $8 million per year (with an
18-month payback) and reduce Cisco’s greenhouse
gas emissions by 3%. Source: EDF

I also disagree with the suggestion that the green jobs that AB 32 (and other policies like it) will promote, are a false promise.  I do think most reports on both sides of this topic require a lot of assumptions and aren't perfect.  Still, here's one that finds that policies that incentivize more efficient energy use -- it looks at the case of California, where energy efficiency policies from 1977-2007 created 1.5 million jobs while eliminating fewer than 25,000:  An overview of some other studies that show the expected job growth impacts of AB 32 is available in this Climate Progress post

In his piece, Rodgers talks about how SunPower moved manufacturing offshore because of the "high cost and red tape" of manufacturing in the US.  This opens up another whole conversation, but I think this rationale eludes the basic point -- labor's inexpensive in places like the Philippines and Malaysia (where their plants are) because wages and the general standard of living is very low.  That's obviously not what we want for California and Californian workers. More to the point, the piece only talks about the jobs manufacturing solar panels -- the real appeal of green jobs is that most of them can't be outsourced - the jobs installing and maintaining the solar panels (as well as financing the solar panels, weatherizing houses, lighting retrofits, installing green roofs, farming local foods, etc. etc.) 

SunPower's Malaysian fab plant.
Image source: EngineerLive
The piece also claims European subsidies that have helped support the market for renewable energy there have had a net-negative impact on jobs. Here is a White Paper from the National Renewable Energy Lab refuting the study cited to support this claim.  Much of the growth in the solar market (and presumably SunPower's revenue) over the past 5 years can be attributed to these policy structures of the major solar markets in Germany and Spain.  In 2003, when Cypress acquired SunPower it was losing money - outsourcing jobs likely had some impact in turning that around, but I'd wager a much stronger driver was the solar market exploding over that time -- due in no small part to these policies and Europe's cap & trade system, as well as the awareness building that hundreds of groups have done on the true costs and impacts of fossil fuels.

Of course, it's surprising to read a piece supporting Prop 23 authored by the Chair of solar company, as it's so clearly bad for the company's growth.  It reminds me of Tony Hayward who said when he took over BP: "We had too many people trying to save the world" ( -- he promptly went to work trying to turn that around, getting super-efficient in a traditional, linear sense, and cutting corners to disastrous effect. 

Here are a few of yesterday's headlines from Point Carbon, that covers the full-fledged carbon market that has been in effect in Europe for 5 years.  The second one makes a very flexible system even more flexible -- the companies impacted by this will likely make a lot more money than they currently are as a result.  The third one removes any legitimacy of trying to tag cap and trade as a "tax".  

  • Market praises California's cap-and-trade design Published: 29 Oct 2010 California's cap-and-trade system will spur investment in clean energy, market sources said.
  • California boosts offset limit in cap-and-trade system Published: 29 Oct 2010California emitters can use offsets to meet 8 per cent of their compliance obligation.
  • California to give away majority of allowances Published: 29 Oct 2010California will hand out most of its allowances at the start of its cap-and-trade programme.

Here's another good take on Proposition 23 from Thomas Friedman:

I respect Mr. Rodger's leadership of SunPower Corp, and hope he will come around and see how policies like AB 32 (or anything that puts a price on carbon) will help his company, and create jobs and improve efficiency and competitiveness.

Finally, the piece states: "While our state government frets over issues like... the habitat of the red-legged frog, our economy—the habitat of homo sapiens—is a disaster."  This brings up the most essential point. We need to really internalize the reality that the economy is a wholly-owned subsidiary of the biosphere.  The red-legged frog's habitat and our habitat are one and the same.  Without policies like AB 32 we will degrade that habitat to the point where it won't be able to support our civilization - and at that point it won't matter how many jobs we were or weren't able to create in the short-term.  Luckily, these policies will create jobs and create a whole new economy that is sustainable for the long term.

Californians, please vote "no" on Prop 23 on Tuesday.

Stay going. 

Friday, October 29, 2010

Global Work Party

It's been a crazy couple of weeks - the 4th Annual Climate Leadership Summit of the ACUPCC was a great success a couple of weeks ago in Denver, and last week we had the opportunity to participate in an exciting milestone of Penn State's strategic sustainability planning process.  In both cases, high-level decision makers from our country's institutions of higher learning were coming together to essentially imagine themselves and their institutions in a sustainable future, and look back to 2010 to see what we had done to get there.

Bill McKibben performs a similar backcasting exercise in his latest piece in the Solutions journal - looking back from 2100 and recounting how the events of 2010 and 2011 started a real concerted push towards 350 ppm.  The Global Work Parties last month were a big help and inspiring - see the video below.

I think it's particularly important to share this video ahead of Tuesdays elections.  Here in the US we get a very slim and distorted slice of the real news - we forget the rest of the world is out there - and the discourse on climate disruption and solutions is very different than what's coming across in our political arena (like this campaign ad for West Virginia Democrat Joe Manchin where he literally shoots the cap & trade bill with a rifle (and not because it's a free-market solution based on Republican principles) -

China, India, Europe, and the rest of the world are moving ahead with solutions, and we're risking missing the greatest economic opportunity, certainly since the Industrial Revolution, and possibly ever, by bowing to vested interests.  We've got to wake up and get moving towards a visions of a sustainable future.

Stay going.

Friday, October 15, 2010

Water & Waste

It's Blog Action Day again - and 2010 has a timely theme: water.|Start Petition 

It's a theme that was prominent at the 2010 Climate Leadership Summit of the American College & University Presidents' Climate Commitment (ACUPCC), which took place this week in Denver.

Keynote speaker James Woolsey, former CIA director, focused his talk on the national security implications of our energy use (as well as the social and environmental implications).  Of course you can't have that conversation without talking about climate disruption and water.

During the business roundtable, moderated by ASU President Michael Crow, water was again a focal point.  Jonathan Lanciani, COO of Organica Water spoke about the need that companies like his have for sustainability-literate graduates.  He also spoke about the serious water challenges our world faces - 2.5 billion people live in "water stressed" areas, global demand continues to grow, and large parts of our energy system (including some clear renewables) are water-intensive.

Organica has an exciting approach - essentially taking the "living machine" concept and creating systems that are small, efficient, and suitable for urban and institutional use.  Waste water goes in the system, and comes out the other end clean, and ready for re-use as grey water (for toilets, irrigation, etc.)

Living organisms do the work - bacteria, microbes, plants, and animals eliminate the need for toxic chemicals and energy-instensive systems.   The systems are aesthetically pleasing, reminiscent of botanical gardens.  And they're odor-free, with upfront costs comparable to traditional systems, and lower operational costs for the life of the system.

Organica's system is just one example of how sustainability constraints can drive innovation - and how we can create economic opportunity and improve the quality of life for everyone by taking a proactive approach to moving towards sustainability.

Stay going.

Monday, October 04, 2010

Breathe Into Us A Spirit

by Emilie Oyen

Many years ago in New York City, I attended

a peculiar Sunday service at The Cathedral Church of Saint John the Divine, the Episcopal Diocese of New York. The "largest church in Christendom," St. John the Divine is breathtaking even among New York City's towering skyscrapers. Peacocks wander around the sculptures of its yard; deceased artists and writers are buried in its crypts; famous tightrope walkers pay for residency there by plying their trade to change the high-up lightbulbs. It is a gorgeous, strange, ethereal and spiritual place.

The morning I attended, thousands of people were crammed into the pews. Hundreds of dogs, cats, parrots, iguanas, fish, chickens, snakes, sheep and geese were also crammed into the pews. It was 1994, and the feast of St. Francis of Assisi (celebrated yesterday), a day when animals are blessed in the spirit of this patron saint of animals and ecology.

Incense burned in pagan-esque clouds at the altar as the procession entered; hymns were sung; the lessons were read. And here we were, with God's creations commingling among the ritual of worship. Carl Sagan spoke that day too, though I don't remember his message. Once suspicious of religion due to its historical role in war, Sagan eventually realized that religious communities were allies on the subject of ecology. He is now buried at St James.

Despite the controlled chaos, the smell of the animals and the enormity of the gathering, peace and harmony held the congregation together. And so when the priest asked for quiet and calm, the great cathedral went silent. I held my breath as an elephant was led into the cathedral and swayed down the central aisle for his blessing.

This blew off the boundaries of church as I had experienced it growing up in a small New England town. I could see, for the first time, the true connection between earth and worship and God, and how it is all One.

Years later, I returned to St. John the Divine for An Interfaith Evening for the Climate with Bill McKibben. The speakers made it again clear: When we worship God, we worship creation; and people of all faiths have an obligation to this earth to protect it. The earth is God's creation, and we are God's stewards.

McKibben was concrete in how to act: Legislation is the answer and a campaign of civil disobedience from our religious tranditions is required. High officials of various traditions can use the value of language to have an immediate impact. The can use their sermons as a tool; congregations as a receptive audience.

Religion can also be a source for faith during the darker hours of fear and anger when working to protect the environment----to breathe into us again a spirit. "God's design is being abused," McKibben began. "But we can turn to the deepest part of our traditions to sustain ourselves."

To read more on subjects of Faith and the environment: