marc marc
marc
marc marc
blog about books journalism speaking contact

Posts Tagged ‘Climate Change’

Can a coal-carrying railroad be green?

Thursday, June 24th, 2010

UNION_PACIFIC_Y2513_20070228Recently, FORTUNE sent me to Omaha to write this story about the Union Pacific, America’s biggest railroad. Impressive company in a fascinating industry without which our lives would be very different. Here’s how the story begins:

The strawberries on your cereal. Your laptop, cell phone, and TV. The coal that’s burned to power them. The car you drive. The roof over your head. We may work in a knowledge economy, but Madonna had it right: We live in a material world.

That’s why the Union Pacific railroad, No. 164 on the Fortune 500, has played a vital role in the U.S. economy since 1862. With $14.1 billion in revenue last year, the UP, which is based in Omaha, is America’s largest railroad. Close behind is its chief rival, the Burlington Northern Santa Fe (BNI) (2009 revenues: $14 billion), headquartered in Fort Worth, which was acquired this year by Warren Buffett’s Berkshire Hathaway (BRK.A) for $26.4 billion. The deal put a spotlight on the often troubled railroad business — in a good way. “It was a vote of confidence in the industry,” says Jim Young, the 53-year-old chairman and CEO of Union Pacific. “He sees the long-term value in the rail franchise — how unique it is in America.”

The story goes on to talk about how Young led a turnaround at the railroad, which suffered from lousy service, not once but twice–in the late 1990s after its merger with the Southern Pacific and again in 2004-2005 when the company cut back too deeply on equipment and staff and wasn’t prepared for a burst of economic growth. As Young told me: “We were the best marketing arm of our competitor.” The UP’s competitors include the Burlington Northern, which also operates in the west, and, interestingly, long-haul trucks.

In its battle for market share with trucks, the railroad industry is touting its environmental advantages. (more…)

Shame on you, Carly Fiorina.

Friday, June 4th, 2010

I’ve long believed that we’d be better off if more successful business people entered politics. They tend to be pragmatic and action-oriented, they’re proven leaders, they understand economics and they’re not beholden to special interests. Look, for example, at the job Michael Bloomberg has done in New York City.

fiorinaAnd then there’s Carly Fiorina, the former CEO of Hewlett Packard, who is running for the U.S. Senate in California, hoping to unseat the incumbent Democrat, Barbara Boxer. She is giving business a bad name, notably with a new TV ad about climate which is unfair, stupid and destructive.

In the ad (below), a shrunken image of Boxer says:

One of the very important national security issues we face, frankly, is climate change.

To which Fiorina replies, dismissively:

Terrorism kills—and Barbara Boxer is worried about the weather….I’ll keep you safe.

My goodness. I’m no fan of Boxer (who comes across as perhaps the least appealing character in Eric Pooley’s excellent new book, The Climate War), but she is well within the mainstream in seeing climate change as a national security issue. Others who link climate to national security include so-called green hawks like James Woolsey, the former head of the CIA, and the military and intelligence analysts at the National Defense University, as the New York Time reported last year.

Last fall, the CIA opened a Center on Climate Change and National Security to study

the national security impact of phenomena such as desertification, rising sea levels, population shifts, and heightened competition for natural resources.

So Boxer’s right and Fiorina’s wrong: climate change is, in fact, a national security issue. Indeed, it’s a pretty good bet that climate change will kill more people that terrorists in the next decade or two.

Fiorina’s derisive comment that Boxer is “worried about the weather” is even more objectionable because Fiorina surely knows the difference between weather and climate. Not long ago, she talked up climate change as a serious issue. In 2008, as an advisor to  John McCain during his presidential campaign, Fiorina told Kate Sheppard of Mother Jones:

I think it’s important that when we think about taking on some of the great challenges now as opposed to leaving them to future generations, we have to talk not only about Social Security and medical care, but also about leaving our planet cleaner for the next generation than we found it.

I suspect that’s what she really thinks, but Fiorina is now running hard for the Republican nomination as a conservative and so she appears willing to say anything to get elected–even if it muddies the debate about climate.

Maybe the key difference between Mike Bloomberg and Carly Fiorina is their respective track records. He built a great company from scratch and made a fortune doing it. She worked her way into the job of CEO of Hewlett Packard, did a lousy job running the company (but a good job promoting herself) before she was sent off by the board with an undeserved $21 million severance package. She’s now using some of her wealth (which rightfully belongs to HP shareholders)  to finance ads like this one.

It really is shameful.

COP15: Everything’s under control

Sunday, December 13th, 2009

bradpitt

He is the most innovative and ambitious housing developer in New Orleans, but c’mon folks, let’s be real.

COP15: CEOs in Hamlet’s Castle

Saturday, December 12th, 2009

Helsingoer_Kronborg_CastleAs humans, we’re wired to focus on the now. I want a new gadget now. I want a slab of pie now. I’m busy now, so I don’t have time for politics. The consequences—consumer debt, a sagging waistline, a Congress beholden to special interests–all arrive later.

You can think about global warming as a now-and-later problem. Governments need to take unpopular actions now to deal with a problem that will do most of its damage later. Businesses need to look beyond the next quarter to the next quarter century.

This evening in Elsinore, Denmark, top executives from such companies as Coca-Cola, Duke Energy, Goldman Sachs and Google took the long view in a fitting venue: Kronborg Castle, a 15th century castle best known as the setting for Shakespeare’s Hamlet. Sitting in a magnificent castle that’s been preserved for six centuries makes you wonder what impact the goings-on on Copenhagen this week will have on the world in 60 or even 600 years.

In that context, it seems prudent to invest now to insure against a climate catastrophe, no matter how distant–even if the short-term result is  a slight drag on short-term economic growth

As Tracy Wolstencroft, global head of environmental markets for Goldman Sachs, put it: “The economy is a wholly owed subsidiary of the environment, not the other way around.” That is, if we ruin the environment, there’s no economy left. (more…)

COP15: Morality and money

Friday, December 11th, 2009

cop15_logo_b_m

If you want to understand why it will be hard to get rich and poor countries to agree on how to deal with climate change, consider the reaction to a remark by Todd Stern, the U.S.’s chief negotiator, when he arrived here in Copenhagen the other day. Stern said:

We absolutely recognize our historic role in putting emissions in the atmosphere up there that are there now. But the sense of guilt or culpability or reparations–I just categorically reject that.

In response, Pablo Solon, Bolivia’s ambassador to the United Nations, said:

Admitting responsibility for the climate crisis without taking necessary actions to address it is like someone burning your house and then refusing to pay for it. Even if the fire was not started on purpose, the industrialized countries, through their inaction, have continued to add fuel to the fire. As a result they have used up two thirds of the atmospheric space, depriving us of the necessary space for our development and provoking a climate crisis of huge proportions.

In Bolivia we are facing a crisis we had no role in causing. Our glaciers dwindle, droughts become ever more common, and water supplies are drying up. Who should address this? To us it seems only right that the polluter should pay, and not the poor.”

We are not assigning guilt, merely responsibility. As they say in the US, if you break it, you buy it.

There you have it. Bolivia happened to speak up, but it could just as easily have been China, India,  Indonesia or Kenya.

The world’s poor countries want to get richer. Producing energy and economic growth in a cleaner way–by using wind or solar power, or nuclear energy, or electric cars–costs more than burning coal or oil. That expense, the poor countries say, should be borne by the U.S., the EU and Japan, which have emitted most of the greenhouse gases now in the atmosphere. Even now, the wealthy countries where 19% of the world’s people live account for 51% of global GHG emissions.

The principle is  simple–polluters should pay because they made the mess. Some people call this climate justice.

But where will the money come from to finance clean technology for China, India and the rest of the world? (Not to mention the money needed by some poor countries to adapt to climate change.) There’s talk in Europe of a global tax on financial transactions.  Island countries, including the Maldives, have called for a global tax on aviation.

Today, EU leaders said that they’d come up with $3 billion for a fund next year and President Obama has said he’ll support limited funding for adaptation and clean energy, but the Euros and dollars don’t add up to what the poor countries want or even what independent experts said will be needed. Besides that, there are big arguments brewing about who would manage the fund.

Much of the debate in Copenhagen will turn on these questions of morality and money.

COP15: Low-carbon Copenhagen

Friday, December 11th, 2009

Just arrived in Copenhagen, and it was immediately evident why annual carbon dioxide emissions per capita in Denmark (9.9 metric tons) are just about half of those in the United States (19 metric tons).

First I took train from the airport to downtown Copenhagen. You can’t do that from Dulles Airport to D.C.

Then I hopped into a tax where this sign was pasted on the back of the front seat.

taxi

After checking into the small but perfectly comfortable apartment where I’ll be staying, I walked to a nearby train station. Bike lanes were everywhere and here are just a few of those parked outside the station. It’s about 40 degrees here, by the way.

bikes

A 5-minute train ride connected me to the sleek modern metro which whisked me to the Bella Center, site of the UN negotiations.

metro

This is the low-carbon lifestyle. It sure beats siting in traffic.

Let’s talk (carefully) about climate and population

Tuesday, November 17th, 2009

Have you heard that we’re getting new neighbors? Demographers expect that the number of people living on earth—now about 6.8 billion—will grow to between 8 and 11 billion by 2050.

Whether population tops out at the high or the low end of those projections will have a huge impact on climate change. So population control is again claiming a place on the environmental agenda.

Nairobi slums

Nairobi slums

Oops! Did I say “population control”? I should have said “addressing population growth” or “assuring reproductive rights for women” or even “securing population justice” — because some people get very nervous when environmentalists start talking about population, and for good reason.

Yet the conversation is worth having, which is why I went to a discussion today at the Center for American Progress in Washington featuring Laurie Mazur, the editor of a new book called A Pivotal Moment: Population, Justice & The Environmental Challenge (Island Press, $30).

Mazur argues that we are at a pivotal moment, not just environmentally, because of the lethal overheating of the planet, but demographically, because, as she writes,

the ultimate size of the human population will be decided in the next decade or so.

That’s because right now the largest generation of young people in human history is coming of age. Nearly half the world’s population—some 3 billion people—is under the age of twenty-five. Those young people will, quite literally, shape the future. (more…)

What’s for lunch? Behaviorial economics meets climate change

Monday, November 16th, 2009

vegetarian-foodAt the Net Impact conference last week, a waiter stopped by before lunch to ask if anyone at our table wanted a vegetarian meal instead of chicken. Just one or two people did.

This, as it happens, is typical. When a meat-based entrée is being served, and people are offered a vegetarian alternative, about 5 to 10% will request it.

But what if the choices were reversed? Organizers of the 2009 Behavior, Energy and Climate Change Conference, which began today in Washington, tried an experiment: They made a vegetarian lunch the default option, and gave meat eaters the choice of opting out.

Some 80% went for the veggies, not because there were lots of vegetarians in the crowd of about 700 people but because the choice was framed differently. We know that because, at a prior BECC conference, when meat was the default option, attendees chose the meat by an 83% to 17% margin.

More than lunch is at stake here. “Omnivores contribute seven times the greenhouse gas emissions, when compared to vegans,” says Karen Ehrhardt-Martinez, the conference chair, who works for the American Council for an Energy Efficient Economy.

Might there be broad-based ways to promote a vegetarian diet, while giving people the freedom to choose what they want? How can smart-grid technology be designed to encourage people to conserve energy? Which “green” marketing messages work, and which don’t? Can the insights of behavioral economics help fight climate change?

Those are the questions that engaged the policy makers, academics, and business executives at this BECC event, which differs from most conversations about climate change. (more…)

The nerd in the cabinet

Thursday, November 5th, 2009

Steven_Chu_official_portraitOnce a professor, always a professor.

Steven Chu, the energy secretary, winner of the Nobel Prize and former physics teacher at Berkeley, spoke tonight at a Washington fundraising dinner for Conservation International, the global NGO.

Actually, he delivered a lecture, deploying a long, detailed PowerPoint presentation, with charts and graphs explaining temperature fluctuations over decades, rising CO2 concentrations in the atmosphere over the last 800,000 years, changes in sea levels, payback for investments in energy efficiency, even a diagram of a new battery technology that included this caption:

Battery about to charged: Positive Mg ions and negative Sb ions are dissolved in electrolyte (green)

Battery fully charged: Mg (blue) and SB (yellow) become the anode and cathode

It was another one of those all-too-frequent moments when I wish I had taken more science classes in college. And remembered why I hadn’t.

By coincidence, Michele Obama visited the energy department earlier in the day and said:

My husband loves his Cabinet.  He was extremely excited that he had a real nerd on his team.  He talked about it for weeks on end.

It’s easy to see why the cerebral president and his brainy energy secretary would bond.

Chu wasn’t spellbinding at the CI dinner but in this city of politicians and special interest groups, with climate change legislation again on the front burner, it was actually refreshing to study a Power Point instead of being bombarded with talking points. Spin doctors marshall facts to support their arguments. Chu starts with the science and works his way from there to solutions.

He argued for three broad approaches to the climate crisis – a major commitment to energy efficiency requiring government regulations and financing, changes in forestry and agricultural practices and still-to-be-discovered breakthroughs in clean energy technology. Some highlights:

Energy efficiency: Chu said market failures – among them lack of knowledge and lack of financing – stand in the way of efficiency to commercial and industrial buildings and to homes which deliver relatively quick paybacks.

“How many University of Chicago economists does it take to change a light bulb?” he asked.

“None,” he replied. “If the light bulb needed changing, the free market would have done it.”

Calling himself “an energy conservation nut,” Chu displayed a chart showing that efficiency standards for refrigerators adopted years ago in California had reduced annual energy costs, on average, from $1272 to $462 a year. “Even though refrigerators have gone up in size, energy usage has gone down by 70%,” he said.

The simple step of painting roofs white could cut air conditioning costs by 15% in warm weather regions, he noted.

Forestry and agriculture: Together, deforestation and agriculture account for about 31% of annual greenhouse gas emissions, Chu (and his pie chart) said. “To achieve our energy and climate goals,” he said. “We’ve got to solve deforestation and change our agricultural practices.”

Some of this can be quite complicated: Rich countries, rather than cutting their own emissions, could finance alternative livelihoods for people in the tropics so they don’t cut down trees. Other ideas are simpler: If you provide poor people in the global south with solar or highly-efficient cook stoves, then they don’t have to burn as much wood to heat their homes or cook food.  An efficient stove avoidsthe equivalent of two tons of carbon emissions, about half the amount emitted by a typical car in a year.

Protecting forests is ”the least expensive way to decrease carbon emissions,” Chu said.

Technology breakthroughs: The energy department recently announced $151 million in grants for transformative technology under a program called ARPA-E, which stands for Advanced Research Projects Agency-Energy, and is modeled after the federal defense spending project that led to the invention of the Internet.  “We don’t have all the technologies we need,” Chu said.

Interestingly, I listened to Chu chat with several venture capitalists  just before the dinner in Union Station and he asked them how they thought his  department was doing at reviewing grant applications from startup fims. He said he had a feeling that the DOE staffers who review the grants might be too conservative and risk-averse, and that he intended to urge them to take more chances on long-shot ideas that could deliver big breakthroughs.

Only near the end of his talk did Chu revealed a bit of the passion that he brings to the topic of climate change.

The costs of enacting climate-change legislation, he said, are about 45 cents a day for a family of four.

And the cost of doing nothing?

One is that the U.S., which recently fell behind China in high-tech manufacturing, will fall even farther behind. “Very recently, China turned a corner,” he said. “China and other countries will pass us by.”

“And the other cost,” he said, “is that we will expose our children and grandchildren to unconscionable risk.”

No PowerPoint slide was required to explain that.

A bipartisan breakthrough on climate

Monday, October 12th, 2009

Kudos to John Kerry and Lindsey Graham. Their op-ed in Sunday’s Times points the way to a breakthrough in the climate change debate that’s desperately needed.

john-kerry_0Their proposal has six elements. (1) Aggressive reductions in emissions. (2) Support for nuclear power. (3) Financial incentives for so-called clean coal. (4) More domestic oil and gas production. (5) Trade barriers to protect U.S. industry from competition from places that don’t regulate greenhouse gases. (6) Cost controls.

Each one of those ideas is controversial. Environmentalists, for the most part, oppose nukes. Some are skeptical about clean coal. Protectionism raises thorny issues. So does the idea of trying to protect businesses and consumers from the rising cost of electricity sincethe economic rationale for putting a price on carbon is to capture the social and environmental cost of global warming pollutants.Lindsey_Graham_Official_Portraitweb

Still, Kerry and Graham have pointed the way forward. Now it’s up to other Washington politicians–the president, Barbara Boxer, John McCain–to get behind this bipartisan approach to climate change legislation. Big business and big green groups, organized as the U.S. Climate Action Partnership, have key roles to play, too.

Initial reaction to the Kerry-Graham blueprint has been favorable, at least from the left. Dan Lashof, director of the climate center at NRDC, calls it a “game-changer” and writes: (more…)