Climate change is a relatively new area of engineering, with the concern for climate change and desire for solutions growing in the last two decades. As it is also highly evolving, new approaches and terminology are being incorporated. Here is a peek at where things stand now; terms and approaches may change quickly in the future!

Climate change vs. global warming. The popular press interchanges these two terms and, in fact, uses global warming more often. But there is a difference between the two and climate change is the preferred term in most cases. While initially, we were concerned with the planet warming, subsequent studies have pointed out that not all of the Earth will warm. In fact, some areas may cool slightly or not change in temperature appreciably. One example that modelers point out is extreme western Europe whose warmth is contributed to by the Gulf Stream. However, if cold water from melting glaciers from the north reach the north Atlantic, it could neutralize the Gulf Stream and lessen its warming effect. Thus, areas like Portugal, Spain, western France, and Ireland can actually cool over the years. There are many other effects like the Gulf Stream. Certainly, the climate will change and, thus, climate change is the preferred term.

Climate change is centered around “carbon” emissions. This is, in my opinion, an unfortunate term because it is carbon dioxide that is the main greenhouse gas and many other “carbon” compounds have no appreciable effect on trapping radiation. But “carbon” has become so ingrained that it is now accepted. And thus, many terms derive from “carbon”. For example, the new term about the study of the economics of carbon pricing, regulations and reduction strategies is now called ”carbonomics”.

This is not a new term, but an approach companies are using to analyze their carbon emissions is life cycle analysis (LCA). LCA is an analysis of the impacts of a process or a product through its life cycle. Just imagine an item you have right now: the shirt you are wearing, the laptop on which you are reading this article, a pen, a cup of coffee, etc. What is the life cycle of that item? What investment was made for the infrastructure to make it (factory, roads, trucks, etc.)? What is its supply chain? How is it fabricated or manufactured? How is it distributed from the factory to the warehouse or store? How is it sold and how is it used by the consumer? And the final step of the product’s life cycle is its end-of-life (recycling, landfill, etc.). Each one of these six portions of an item’s life cycle has greenhouse gas (GHG) emission and energy usage implications. An analysis of GHG emissions of each of these six areas can reveal where GHG emissions are greatest and what would make the most sense to focus on. By the way, LCA can be used for other analyses, too (water usage, waste generation, etc.). A growing amount of data is being published on LCA procedures and results.

Carbon regulation and incentives are not commonplace currently in the US, but significant worldwide, and worth understanding nomenclature. This is highlighted by emission trading systems (ETSs) that encourage the development of carbon credits based on the trading system or regulation. A common ETS is “cap and trade”, which gives a limit (cap) of GHG emissions. If an entity emits less than its cap, it can sell (trade) the excess emissions not emitted as credits. For entities having trouble finding feasible ways to reduce GHG emissions, purchasing such credits is a viable option; the developer of the credits is financially rewarded. Another ETS is simply a “carbon tax”, a payment required for emitting GHGs, which, of course, goes up with greater GHG emissions. Finally, a feature of most ETSs is “offsets”, the reduction of GHG emissions outside your facility. Being a global problem, reductions of GHG emissions does not need to occur within your property lines to be effective. If it is cheaper to reduce GHG emissions – even thousands of miles away – than to reduce it at your facility, then take advantage. It’s all good.

I hope this has been helpful to discuss new or existing nomenclature on climate change that is not discussed all that often.

CCES has the technical experts to help you assess and reduce your GHG emissions in an economic manner to save you significant costs and other benefits. Contact us today at karell@CCESworld.com or at 914-584-6720.

On September 22, 2022, the US Dept of Energy opened applications for a $7 billion H2Hubs program with the goal of creating 6 to 10 regional clean hydrogen (H₂) hubs across the country. This expenditure, covering fiscal years 2022 through 2026, would likely be the largest investment of funds in DOE history. The H2Hubs program will focus on the production, processing, delivery, storage and end use of hydrogen. This is part of the broader goal of supporting the US’s commitment to achieving a carbon-free electric grid by 2035 and a net zero emissions by 2050.

The H2Hubs program will be managed by the US DOE’s Office of Clean Energy Demonstrations. Each eventual H2Hub must be a collaboration of multiple partners to integrate diverse hydrogen technologies to meet the production, delivery, etc. goals of above.

DOE anticipates an estimated performance period for each hub of 8 to 10 years. However, DOE will encourage and expect a shorter period of performance depending on one’s level of readiness to proceed.

DOE has set a deadline of November 7, 2022 for Concept Papers outlining proposed research projects and April 7, 2023 for full applications. Selection notifications are anticipated in Fall 2023.

Hydrogen is both the most efficient fuel (on a weight basis) and is the “cleanest” from a climate change point of view. Combustion of hydrogen is carbon-free; it forms no GHGs. The problem is that, currently, little naturally occurring hydrogen exists. Hydrogen must be manufactured by other means, which itself uses energy and emits greenhouse gases. Finding effective ways to minimize or eliminate this energy use for its formation would make it a more attractive and economical fuel source. An initial US DOE guidance established a GHG emission target of no more than 4.0 kgCO2_e / kgH₂ for the lifecycle of H₂ production, transportation, storage, and utilization. 

In addition, hydrogen can be quite explosive. Thus, safety concerns must be addressed, too, in its lifecycle before it can become a commonplace fuel source. In order to get to a carbon-free electric grid and net zero GHG emissions nation, much greater hydrogen usage for energy is likely necessary and these obstacles need to be overcome.

CCES has the experts to help you evaluate your energy sources so you can use that which is most available and cleanest – to stay ahead of changing regulations and to improve your energy efficiency to meet climate change goals and reduce costs. Contact us today at karell@CCESworld.com or at 914-584-6720.

Upon promulgation of the IRA in August, 2022, clients began asking me about whether they can take advantage of incentives now. No, it will take some time for the specific programs to be finalized, approved, and instituted. But on October 6, 2022, a step forward toward this happened. The Treasury Dept and IRS issued 6 public notices requesting feedback on proposed IRS Code sections pertaining to the new Inflation Reduction Act. See the link to the specific request, including background.

Clean Vehicles – Notice 2022-46

Sec. 30D Clean Vehicle Credit

Sec. 25E Previously Owned Clean Vehicle Credit

Advanced Manufacturing – Notice 2022-47

Sec. 45X Advanced Manufacturing Production Credit

Sec. 48C Advanced Energy Project Credit

Home and Business Energy Incentives – Notice 2022-48

Sec. 25C Energy Efficient Home Improvement Credit

Sec. 25D Residential Clean Energy Credit

Sec. 45L New Energy Efficient Home Credit

Sec. 197D Energy Efficient Commercial Buildings Deduction

Energy Generation – Notice 2022-49

Sec. 45 Renewable Electricity Production Credit

Sec. 48 Energy Investment Credit

Sec. 45U Zero-Emission Nuclear Power Production Credit

Sec. 45Y Clean Electricity Production Credit

Sec. 48E Clean Electricity Investment Credit

Credit Payment Structures – Notice 2022-50

Sec. 6417 Direct Payment of Certain Credits

Sec. 6418 Transfer of Certain Credits

Bonus Credit Requirements – Notice 2022-51

Prevailing Wage – (Secs. 30C, 45, 45L, 45Q, 45U, 45V, 45Y, 45Z, 48, 48C, 48E and 179D)

Apprenticeship – (Secs. 30C, 45, 45Q, 45V, 45Y, 45Z, 48, 48C, 48E and 179D)

Domestic Content – (Secs. 45, 45Y, 48 and 48E)

Energy Communities – (Secs. 45, 45Y, 48 and 48E)

Incentives as part of Sec. 45V (Hydrogen Production) and 45Q (Carbon Capture) are not included in this request for public comment and are still being finalized.

Public comments are due on November 4, 2022. It is still a long way until the IRS codes are modified and go into effect. Not going forward with a smart energy upgrade and waiting for a code to be finalized is not a good idea. That means you are continuing with equipment or a system that is less effective and costs you money in the meantime. It is better to go forward with smart upgrades now, even if it is too soon for some of these credits. And, you never know, many may end up with retroactive opportunities for benefits in the provisions.

CCES has the technical experts to help you implement smart energy upgrades to save you significant costs right away, reduce the costs and aggravation of O&M, modernize your operations, and maximize the comfort and effectiveness of your customers and staff. Contact us today at 914-584-6720 or at karell@CCESworld.com.

On October 5, 2022, NYC issued proposed clarifications and changes to LL 97, the rigorous greenhouse gas (GHG) emission rule that goes into effect for many covered buildings in 2024. See: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www1.nyc.gov/assets/buildings/pdf/proposed_greenhouse_gas.pdf

The proposed changes are not official yet and must go through public comment. The NYC DOB hopes it will be incorporated into LL 97 soon and the program go into effect January 1, 2024. Some highlights of the proposed changes based on a quick non-legal review of the published changes:

Differentiation of building type. The original LL 97 contained 10 building types and defined GHG emission limits for each. But mixed-use buildings were not addressed. It is certainly known that many subject buildings may have operations that fit more than one type, such as the common multi-family residential building with retail units (supermarket, pharmacy, bank, etc.) at the ground level. LL 97 now requires such a subject building to differentiate the space of different functions (how many square feet is multifamily residential, how many are retail) and apply total energy usage proportionally to the different areas. At the same time, the proposed change raises the number of building types to 61, each with its own GHG emission limit (in metric tons CO2e / sf) for the building owner to assess.

Allowance of Time of Use (TOU) to calculate GHG emissions from electric usage. LL 97 initially required total electric usage no matter when it was being used (peak time during the afternoon vs. preferred time, such as night). The proposed change allows a change in GHG emissions based on TOU. A subject building looking to take advantage of this must be able to meter its electric usage hour by hour for a long period, whether through the utility or with approved meters it operates. The proposed changes contain new GHG factors encouraging off-hour electric usage to develop lower GHG emissions.

Use of RECs and solar panels to lower GHG emissions. The initial version of LL 97 left open policy about being able to deduct GHG emissions if one had registered Renewable Energy Credits (RECs). There was some thought of allowing this, but restricting RECs to those generated within NYC or New York State. This change allows one to deduct one’s GHG emissions from electricity usage only with registered RECs, and does not appear to limit it from where it was generated geographically. A building can also reduce its GHG emissions for LL 97 compliance by implementing solar panels or other renewable source. The proposed change states that one must calculate total power generated by the renewable source (and presumably, put into the grid) and the use of total electricity by that building. A building owner cannot “double dip” and take credit for RECs for a solar panel array on one’s property and deduct GHG emissions based on electricity generated, too.

Further exemptions from reporting.
1. A new building does not have to report GHG emissions per LL 97 until after its first full calendar year of operation.
2. The proposed change exempts a new owner of a building from being responsible for submitting the annual LL 97 report until it is owned for a full calendar year. The change does not appear to state whether the building is thus exempt from submitting a report for the calendar year that the building changed ownership or whether the previous owner is still responsible.
3. An owner of a subject building for which a full demolition permit has been issued is not required to submit a LL 97 report for the calendar year during which demolition work has begun; the owner must submit a written certification by a registered design professional that one or more energy-related systems within the building has been compromised and legal occupancy is not possible.

Public comment is due on November 14, 2022. A public hearing will be held that day. This is only a preliminary review of the changes. Please have experienced, professionals review the changes in detail, including legal counsel, before undergoing any changes in response to it.

CCES is a technical firm that can help you assess your potential compliance with LL 97 GHG emission limits and develop and manage for you smart, cost-saving strategies to reduce potential LL 97 fines or achieve compliance. Contact us today at karell@CCESworld.com or at 914-584-6720.

As is well known because of safety concerns (COVID) and growing energy costs, office functions and architecture need to be re-examined to benefit the company. Is the space that a company leases being used by staff optimally and for the lowest cost? How many people can effectively and comfortably use a space is a question of growing concern.

Ideally, you may want to jam as many people and equipment in given rooms. Besides the Fire Department likely objecting to this, overfilling space could affect productive utilization, too, as well as heighten safety concerns. Even with low COVID infection rates lately, many workers are concerned with viral safety and want to have space.

Therefore, in places where many people may congregate (auditoriums, conference rooms, training or break rooms), consider removing or roping off some seats to lower any potential anxiety of people concerned with health and other issues.

Having staff utilize the existing workspace must be balanced by the new reality of virtual and hybrid working situations. Thus, in most cases, companies will find themselves with too much underutilized space. Thus, a company should develop data around headcount and equipment needs. How many people need to work in the office how much space may each need. This is not so simple, as different functions require more space (including, storage space) than others. Now space planning becomes easier. Software exists to translate headcounts, needs, and trends into space utilization options. The importance of quality data cannot be understated. One may walk by and think a certain conference room is “always” used, when, in reality, meetings may tend to occur only at certain times of the day (one example: afternoons, when people surely reach the office). Make sure the utilization data collected is correct and thorough.

If one’s headcount indicates an excess of leased space and especially if workers prefer to work from home, the challenge is to make the office an attractive destination. What can make an office more attractive to get staff to come in more often? Two things: the colleagues or teams that the worker must interact with and that in-person meetings are more productive and more fun than Zoom. And the office being healthy and fun where staff will want to spend time.

See what you can do to rearrange space to encourage people to get up from their desks (to printers, coffee, etc.), and have a chance to interact with colleagues, even to say hello. Consider games; I worked in an office once that reserved space for jigsaw puzzles. It was great and relaxing after a stressful period staring at a screen to get up and put a couple of puzzle pieces in place. I believe that improved morale and focus. Think of how collaborative space and break rooms can foster more cooperation and ingenuity (something that can’t be done online). Think of how people who refer to lots of materials and drawings can spread them out effectively to use space. Perhaps, people will look forward to utilizing the space that you are leasing.

And don’t forget to optimize your energy usage and make sure all areas are well-ventilated, to improve worker efficiency and the health and well-being of your staff.

CCES has the technical experts to help your firm optimize energy usage for your building’s specific needs and situation. Contact us today at 914-584-6720 or at karell@CCESworld.com.

This is the second in a series to help all of us – in our homes and our work facilities – save energy costs. Average US energy costs in August rose 16% compared to August of 2021. Wow! Don’t just “shrug your shoulders”, curse a little, and then pay your bill. There are ways to bring down your energy costs quickly. And the beauty of reducing energy usage is that your single action will continue to reduce your energy costs for years in the future without having to do anything else. Contrast that to sales. Say you succeed in increasing sales. Well, you have to do it again year after year.

Oh yes. These measures will cost you money upfront. Yes, I get it. But smart choices will give you quite a return on the investment – certainly better than anything Wall St. can offer you, without the risk! This is the second in a series of articles of reliable energy saving projects for your buildings and home that represent good energy cost savings and can be relatively affordable.

Your Equipment. Your buildings are full of “stuff”. Equipment that makes your business work or provides comfort for you also uses energy. Think of the equipment you use and don’t think about much: your laptops, printers, TVs, kitchen equipment, data servers, etc. When you bought the equipment, perhaps you looked for the cheapest model or the most reliable one or just one from a brand you trust. That’s fine. But there is another factor involved in purchasing such equipment: energy usage. Because a cheap refrigerator that uses a lot of electricity is not really cheap! Remember, refrigerators use electricity to keep your food or other items cool or frozen not just when you open the doors a few times a day, but it uses electricity 24/7. A unit that uses a lot of electricity continually for 15 years is no bargain even if you bought it for cheap originally.

Amazingly, there has been a growing concern and a revolution in producing equipment that functions well while using less energy. A government program called Energy Star analyzes such equipment. Equipment that generally uses 20% or greater. less energy than the average brand can earn the Energy Star label. Such equipment has features designed into it to save electricity. You don’t have to do anything. Just buy and install. Just one example: laptops with sleep modes. Yes, Energy Star equipment is usually a little more expensive than the average brand; you are paying for the energy-saving feature. But the savings in your energy bills (especially now with energy costs so high) will quickly make up for the slight increase in upfront payments.

So a simple tip: when buying new or replacement equipment, only buy that which has the Energy Star label. Make it a Purchasing policy. No work for you to do. Just buy it and install. The features will save you the energy. No, don’t replace perfectly good equipment with Energy Star-labelled products; that makes no sense. But in the long-term, when buying new equipment, only buying Energy Star products will gradually save you significant energy – again – without doing any work or anything.

CCES has the experts to help you assess your equipment, including HVACs, windows and lights and provide diverse options to improve their effectiveness and help you save significant energy costs and put your business in a more competitive situation. Contact us today at 914-584-6720 or at karell@CCESworld.com.

The summer of 2022 will go down as one of the most volatile and extreme in history. Temperatures exceeding an unheard of 40⁰C (104⁰F) in the UK (and they’ve been taking temperature readings for many centuries!). Rivers running dry in eastern Europe and China, not just escalating a drought, but also impacting crucial river transportation. One-third of Pakistan (over 100,000 square miles) is flooded and uninhabitable.

And together with the war in Ukraine upending energy (oil and natural gas) markets, nations are realizing that they must implement more renewable energy to lessen the dependence on fossil fuels and reduce greenhouse gas emissions.

But there is a problem with producing more wind turbines, electric vehicles, and solar panels. They depend on compounds that are rare on Earth and may require some not very nice environmental tactics to get them from the ground and politics to keep their flow.

The problem resolves around compounds called rare earth elements (REEs), such as lithium, nickel, cobalt, manganese, and graphite, which are crucial for producing batteries and copper and aluminum for the electric grid. Government studies appear to show that the Earth probably has sufficient REEs accessible to enable a full transition to renewable energy. The issue is the inefficiency of their extraction, transport, and use. Can the mining and processing activities across the supply chains be expanded in an environmentally and socially acceptable means quickly enough to meet the timeline of moving to a renewable economy? Many REEs are found in Africa and there is already concern about the prospect of cheap or slave labor to mine for REEs, as well as the politics of a few nations or companies controlling this crucial supply, such as China. In addition, mining operations are very energy intensive, leading to the question of tradeoffs: causing increased greenhouse gas emissions to reduce them in the future.

The good news is that the US’s Inflation Reduction Act will likely spur demand for electric vehicles and renewable energy plants. There are incentives to build more solar and wind farms and manufacture more EV vehicles. What may be the laggard in moving toward a clean energy society is the supply chain, getting a reliable supply of REEs to manufacture the equipment. Currently, about 40% of the world’s lithium (needed for batteries and for solar panels) comes from China, a specific region that suffered a severe drought this summer, drying up most of that region’s rivers, reducing electricity production itself (to mine the lithium) and transport it appropriately. All contributed by climate change. In addition, it takes 2.2 tons of water to make a ton of lithium, a problem for the drought-stricken areas where lithium is produced, China, as well as portions of Latin America. While sufficient lithium is being produced to make the batteries for EVs to meet current demand, if the recent increase in demand for EVs continue, there may well be a shortage of EVs in the market by 2025-2030.

Another issue is nickel. Indonesia produces more nickel than any other nation. However, its nickel is of poor quality, requiring it to be double smelted before it can be used. And smelting is a major energy user. One can purchase better quality nickel and avoid the extra energy cost, but the best quality of nickel comes from … Russia.

CCES has the technical experts to provide you and your company and operations with facts about renewable and battery power, whether it can be beneficial to you and the costs and benefits. Contact us today at 914-584-6720 or at karell@CCESworld.com.

For the second winter in a row, Europe faces a shortage of natural gas needed to keep warm and to make electricity. The war in Ukraine and the subsequent reduction in buying natural gas from Russia has been the biggest reason for this, although there are others, such as the shutdown of several nuclear power plants and reduction of natural gas production as part of several nation’s climate change goals.

To meet the high demand, European Union countries have increased their reliance on natural gas imports, and away from Russia. The block of 27 EU countries is the world’s largest importer of natural gas. Before the war, in 2019, Hungary, Finland, the Czech Republic, Slovenia, Romania, Bulgaria, Estonia, Latvia, Slovakia, Macedonia, Bosnia-Herzegovina and Moldavia imported over 90% of their natural gas from Russia, primarily via pipelines. But these imports from Russia are now restricted, creating a natural gas shortage and with winter coming up, there is significant worry about basic heating needs throughout the continent.

On to the rescue is the US, which has plenty of natural gas supply, the technology to convert it to liquified natural gas (LNG), and the means to export it to Europe. In addition, natural gas prices are lower in the US. Thus, LNG exports are quickly replacing Russian imported natural gas. LNG is natural gas that is highly compressed and chilled, making it easier to load on ships in large quantities for transport. The US is taking advantage of the demand by shifting cargoes intended for Asia and South America to Europe, obtaining higher prices for its LNG. Half of all US exports of LNG are going to Europe. The US has 7 terminals to produce LNG and export. Reports state that they have been operating at maximum capacities. LNG arrives at terminals where it is converted back to gas and placed on pipelines to facilities.

Germany, the EU’s largest user of natural gas, has no LNG terminals. It planned to import more Russian natural gas supplied via the new Nord Steam 2 pipeline. The pipeline was constructed at a cost of over $11 billion, but has not yet been commissioned due to the war in Ukraine. Germany is working hard to de-carbonize its energy sources and is pushing renewable power, such as solar and wind. However, these strategies will not replace the power derived from coal-fired, nuclear plants, and Russian-derived natural gas. Germany is working to construct new LNG terminals. EU countries, such as Denmark, Norway, and Holland are trying to increase natural gas supplies in the North Sea and other locations. However, many of the existing wells are running dry. A major find of natural gas has occurred in the Mediterranean Sea, off the coast of Israel. Israel has begun processing natural gas from there and has installed pipelines to Europe through Greece.

In the interim, however, natural gas costs will increase as demand is unlikely to subside as the EU fights an upcoming winter and tries to avoid a recession. It will have to use these alternative sources of natural gas, as well as encourage even more renewable power, and push for conservation.

CCES has the technical experts to help you assess the energy situation of your company, municipality, or buildings, to help you assess how to minimize costs and usage. Contact us today at karell@CCESworld.com or at 914-584-6720.  

All of us – in our homes and our work facilities – feel it. Energy costs are rising faster than inflation, which is growing at a faster rate than ever in the last 40 years. Don’t just “shrug your shoulders”, curse a little bit, and then pay your bill and move on. There are things you can do to bring down your energy costs now. And the beauty of reducing energy usage is that your single action will continue to reduce your energy costs for months and years in the future without having to do anything else. Contrast that to sales. Say you succeed in increasing sales, well, you have to do it again year after year.

Oh yes, oh yes. These measures will cost you money upfront. Yes, I get it. But smart choices will have you make these costs back in time. But still money is hard to find for these projects. This is the first in a series of articles of energy projects for your building and home that represent good energy cost savings and can be relatively affordable.

Windows.  Perhaps your windows are old and maybe leaky. Perhaps they are single pane. This is a problem. Your building is a “shell” to keep the conditioned air (warm or cool) that you’ve spent money to make (boiler combusting natural gas or AC system using electricity you pay for) from escaping. You want the shell to keep that warmth or cooling inside where people are. Windows are the weak point of a building’s shell. They are nice to have and look out of, but not a good insulator at all. Poor windows can lead to a lot of leaking of conditioned air, meaning your boiler or AC unit must work harder to produce replace lost warmth or cooling, using more energy (which you are paying for) and leading to more wear and tear on the expensive equipment.

But there is a problem with replacing windows. Yes, replacing leaky, single-pane windows with double- or triple-pane windows is an answer, but it’s a relatively expensive solution with a long payback period (12-30 years is common). Given that windows often last 30, 40 or even more years, it is a good investment, but understandable that an owner or manager would hesitate given the upfront cost and long payback. But there are less expensive items to do vis-à-vis the windows to improve insulation.

One way is adding a pane to the inside of your window. Such window inserts (often see-through plastic, not breakable glass) add significant insulation to your windows to keep conditioned air in and save you excess fuel combustion or electricity. They can be installed quickly and also improve noise attenuation and security properties, too. One disadvantage of this product is that it can only be used for inoperable windows (do not open or shut). Intelligent Energy Group sells such window inserts to consider.

Another way to enhance insulation without replacing windows is to add a film to the window, which can block IR, UV, and other solar radiation from entering the room. This prevents heat gain in a room, measured by its Solar Heat Gain Coefficient. The lower the SHGC, the better the film is at blocking non-visible radiation that would heat a room in the summer. Film is also often rated by its visible transmittance (VT). The higher the VT, the more visible light is transmitted, which is what you want for a room. The right window film can improve a window’s insulation properties. The government agency, Energy Star, currently does not rate window film, but the National Fenestration Rating Council (NFRC) does. One vendor to consider is Wex Energy, which manufactures a product called WindowSkins. CCES has the experts to help you assess your windows and provide diverse options to improve their insulation and help you save energy costs. CCES can also help you save energy in your building in other areas, too. Contact us today at 914-584-6720 or at karell@CCESworld.com.

In their August 5, 2022 edition, the New York Times reported that the State Financial Officers Association has been putting pressure on Republican state treasurers, who are responsible for managing their state’s finances, to use their power to promote oil and gas interests and to work against federal government climate change actions. (https://www.nytimes.com/2022/08/05/climate/republican-treasurers-climate-change.html?searchResultPosition=1).  According to the article, nearly half of the US’s state treasurers are on board, using their power to slow or reverse climate action, such as punishing companies that want to reduce GHG emissions, fighting financial climate change risk disclosure rules, and lobbying against nominees to federal posts just because of their climate change views. All coordinated by a national movement.

Republican treasurers in some states are attempting to refrain from investing in businesses that have cut ties with fossil fuel companies, adversely affect relationships with rating agencies that include climate risk in its credit ratings of states, and object to an array of proposed federal rules concerning climate change risk, such as proposed SEC rules on mandatory climate disclosures and decisions on whether retirement plans can consider climate change risk in their investment strategy.

These moves raise the stakes on effective policy and show that even climate change, despite the preponderance of evidence of its cause and effect, is becoming a political, partisan issue. While Republicans do not have the votes currently in Congress to block climate change initiatives, it is hoping to affect policies through the financial markets.

In addition, such moves will come at a financial cost to the particular state and state government. Mandatory withdrawing of funds to support a firm will result in weakening a business within the state and give the state and its residents and businesses fewer places to borrow, leading to higher costs in the remaining institutions. This can also lead to concentrations of companies in “climate-friendly” vs. “climate-unfriendly” states, affecting business growth and development, similar to the controversy about abortion being more or less restricted over a state border line.

Climate change is an important issue. The effects are undeniable and exacerbating situations currently to deadly effect, such as the recent floods in eastern Kentucky. One can have an intelligent disagreement on how to address climate change. But to openly try to stymie all actions on climate change over political power is a blow to our democracy. People should be aware of this and voice their opinions and vote.

This represents CCES’s view on this matter. We welcome to hear from you if your views are different. CCES has the experts to help your company or entity address climate change and reduce your GHG emissions in such a way to benefit you financially, as well. Contact us today at karell@CCESworld.com or at 914-584-6720.