“California’s Cap-and-Trade Revolt” – Wall Street Journal, 30 June 2014

Posted on July 28, 2014 by subodh

While West Virginia and Kentucky Democrats are bucking Obama’s climate policy, California Democrats are also fighting similar policy in California, the state’s cap-and-trade program, which is directly effecting the poorest Californians.

Recently, 16 of members of California’s Democratic Assembly wrote a letter to the California Air Resources Board, encouraging the board to revise or postpone California’s cap-and-trade program. The program calls for big manufacturers and power plants to adhere to a state-ordered carbon cap by buying carbon permits or limiting emissions. Transportation fuel suppliers will also have to acquiesce to permits in 2015.

via SF Public Press

Assembly Democrats’ minds are on gas prices, which could surge anywhere from 15 to 40 cents per gallon. California has the highest gas prices in the country, in large part due to fuel blending obligations and taxes. In 2012, the Boston Consulting Group anticipated that gas prices would rise anywhere between $0.49 and $1.83 per gallon by 2020. While the program’s objectives are pure—boosting gas prices is supposed to persuade people to drive less, carpool, or purchase electric cars—California’s cap-and-trade is invariably hurting those who cannot afford it. A majority of the 16 Democratic Assembly Members represent minorities and low-income populations.

The Air Resources Board maintains that the objective of the program isn’t to finance new state governmental programs, though California’s 2014 budget does allocate $250 million from carbon permit auctions, as well as 25 percent of future yields, to fund a high-speed rail. The auctions will bring in anywhere between $12 billion to $45 billion by 2020.

Assembly Democrats are in agreement with the California Chamber of Commerce, which is suing the Air Resources Board to invalidate California’s program.

Developed and Written by Dr. Subodh Das and Tara Mahadevan

June 30, 2014

www.phinix.net skdas@phinix.net

“5 things you can do about climate change” – CNN, 6 May 2014

Posted on June 2, 2014 by subodh

We here at Phinix are huge proponents of doing what you can at home to prevent any further impacts of climate change. The disastrous effects of global warming are stacking up, leading to higher temperatures and rising sea levels. More flooding, wildfires, and droughts are to be expected. Here are five things you can do to lend a helping hand to the environment.

Become Informed

Staying informed about what policy makers are doing and saying is paramount. If you stay educated on climate change, then you can make knowledgeable decisions when voting and electing politicians into office. It also wouldn’t hurt to know what the policy makers are discussing:

Lowering carbon dioxide levels—for example, establishing carbon taxes and carbon caps;
Changing the Earth’s response to the effects of climate change—for example, building seawalls to combat the rising sea levels; and
Adapting the Earth to counteract climate change—for example, changing our oceans to absorb more CO2.

Make Changes at Home

The EPA suggests you do the following to curb your greenhouse gas emissions, which will also save you money:

Change your five most-used light bulbs to products that have the EPA’s Energy Star label;
Heat and cool more efficiently, such as by using a programmable thermostat, changing air filters, and replacing old equipment with Energy Star products;
Seal and insulate your home;
Make use of recycling programs, and compost food and yard waste;
Reduce water waste;
Use green power, such as solar panels; and
Estimate how much greenhouse gas you emit with the EPA’s calculator.

Be Greener at the Office

You can also help out at the office. Here’s how:

Set computers and other office equipment to power down during periods when you’re not using them;
Use Energy Star equipment; and
Recycle and reuse whenever possible.

Reduce Emissions in Transit

You can reduce your emissions both in your daily and cross-country commutes:

Rely on public transportation, biking, walking, carpooling, or telecommuting instead of driving;
Use the EPA’s Green Vehicle Guide to help you make an informed choice about buying a car;
While driving, try to avoid hard accelerations, don’t spend more than 30 seconds idling, and go easy on the gas pedal and brakes; and
Make sure to regularly check your tire pressure.

When you’re traveling by plane, try these tricks:

Consider packing lighter because less fuel is consumed with less weight on the plane;
Fly during the day because night flights have a bigger impact on the climate; and
Buy carbon credits to compensate for the emissions on your flight.

Get Involved and Educate Others About the Bigger Picture

Though one person’s efforts might only have a small influence, involving and educating others will allow our impact to grow. Together, we can help to prevent any further damaging effects of climate change.

Developed and Written by Dr. Subodh Das and Tara Mahadevan

May 13, 2014

www.phinix.net skdas@phinix.net

Novelis Sustainability Report 2013

Posted on January 30, 2014 by subodh

In 2011, Novelis decided to strengthen their company by increasing their business’ sustainability and innovation. The most important component of their new vision is to use 80% recycled aluminum in all their products by 2020. Once they reach this goal, they will then halve their products’ embedded carbon.

In 2011, when Novelis set their intended goals, they used the average of fiscal years 2007-2009 as their standard. Some of their 2020 goals include:

Increase recycled metal content from the current 43% to 80%
Reduce energy usage by 39%, from the current 10 GJ/mt to 7.6
Reduce water usage by 25%, from the current 3.1 m3/mt to 2.7
Halve the absolute amount of GHG emissions, from the current 18 M mt to 11
Have zero landfill waste from the current 55.6 K mt

While the company is headquartered in Atlanta, George, there are also facilities in Sao Paulo, Zurich and Seoul, serving the beverage can, automotive and high-end specialty markets. There is a rising demand for aluminum in these markets, especially the automobile industry, since 2010 when Obama obligated car manufacturers to double their new-car average fuel economy by 2025. In 2013, the aluminum industry grew 25%, as aluminum allows for lightweighting vehicles, a crucial enabler in increasing fuel efficiency.

As mentioned before, another huge element of Novelis’ move to increase sustainability is to reduce the embedded carbon in their products, which can be done by boosting recycled content. By using more recycled materials and by creating fewer new materials, Novelis reduces their carbon footprint. They’ve recently invested almost $500 million in doubling their recycling space by opening two new recycling plants, one in South Korea and the other in Germany.

Novelis is directly addressing the global issue of climate change, particularly the current concern of the maximum safe limit for concentration of carbon dioxide in the Earth’s atmosphere. The company’s method to decrease their GHG emissions can best be described as a life cycle approach, with a goal of reducing their emissions by 50% by 2020. This idea, coupled with increasing their recycled metal content to 80%, will help them reach their target.

Novelis has also incorporated supporting recycling education into their new vision, as well as advocating awareness and policy initiatives, which will escalate recycling rates and increase the company’s supply of post-consumer aluminum scrap. We at Phinix are huge proponents of all of the above, especially recycling education.

Take a look at Novelis’ website and the full report.

Developed and Written by Dr. Subodh Das and Tara Mahadevan

January 28, 2014

www.phinix.net skdas@phinix.net

“Greenhouse-Gas Fight Escalates” – Wall Street Journal, 2 September 2013

Posted on September 20, 2013 by subodh

The Obama Administration is seeking to increase prices on greenhouse gas (GHG) emissions, a move that has inevitably stirred up trouble in Congress, causing Congress to introduce new legislation.

In May, the DOE publicized estimates of how much a ton of carbon dioxide emissions costs the US — the estimate in 2010 dollars was $21, a decrease from the 2007 estimate, which was $36 per ton.

Carbon dioxide emissions fell out of demand, and prices plummeted, between those years because the administration did not lawfully require companies to buy CO2 stock. But Obama has found that those estimates are significant because the pricier carbon pollution becomes, the greater impact it can have on both the US environment and economy. The EPA is planning to introduce additional, similar regulations, which also include limits for new power plants.

This August, House Republicans passed a bill, prohibiting the use of those estimates; House Republicans would rather have Congress price out estimates, rather than the administration.

Energy Secretary Ernest Moniz has concluded that the 2007 $36 estimate is similar, or lower, than estimates used by major oil companies. Exxon Mobil Corp, for instance, has priced carbon dioxide emissions at $80 per ton by 2040, while BP currently prices carbon at $40 per ton.

The great assumption behind placing a price tag on carbon emissions is that climate change is rapidly developing, and that more CO2 in the atmosphere will give way to more natural disasters and growing sea levels. The Bush Administration was also moving to price carbon emissions, though unsuccessful. The Obama Administration has employed many computer economic models in order to ascertain current estimates, though such estimates are not trusted by all. A $36/ton estimate could surely lead to stricter regulations on coal-fired power plants, meaning higher electricity costs for consumers.

Yale economics professor William Nordhaus is the innovator behind the best-known climate change model. While numerous scientists have tried to deny the fact that climate change exists, Nordhaus, though “no climate hawk”, continues to present key facts as to why it is important that CO2 emissions be regulated. Read more here.

Developed and Written by Dr. Subodh Das and Tara Mahadevan

September 13, 2013

Phinix, LLC

My Thoughts and Experiences

Category Archives: Carbon Credit

“California’s Cap-and-Trade Revolt” – Wall Street Journal, 30 June 2014

“5 things you can do about climate change” – CNN, 6 May 2014

Novelis Sustainability Report 2013

“Greenhouse-Gas Fight Escalates” – Wall Street Journal, 2 September 2013

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