Environmental Defense: living up to its name

Fred Krupp

What a different just a few years can make. Hard as it is to believe, there was a time not long ago when Congress appeared to be on the verge of a bipartisan agreement to regulate global warming pollution.

Republicans John McCain, John Warner, Newt Gingrich and Tim Pawlenty all supported efforts to put a cap on greenhouse gas emissions. Gingrich and Pawlenty went so far as to appear in commercials with the Environmental Defense Fund supporting climate regulation. And now?  “It was a mistake, it was stupid, it was wrong,” Pawlenty says.

The radical shift in the political climate means that big NGOs like the Environmental Defense Fund, the Natural Resources Defense Council and the Sierra Club now must fight merely to  preserve the status quo in Congress.

Environmental groups are playing defense rather than offense in Washington, said Fred Krupp, the president of the Environmental Defense Fund,  during a panel today on climate policy that opened FORTUNE’s Brainstorm Green conference.

He noted that House Republicans have voted to block funding not just for EPA’s efforts regulate carbon pollution (efforts that are required by a Supreme Court decision) but also for EPA efforts to control, on public health ground, mercury pollution from cement factories.

On climate issues, Fred said: “It’s hard to have a meaningful exchange of viewers, a serious conversation in Washington.”

That’s a big, big problem because, as he noted, every major piece of environmental legislation in the U.S has been enacted with bipartisan support. Fred himself was a leading advocate for the  late 1980s cap-and-trade system–to regulate sulfur dioxide pollution–that was put into place by President George Bush and his EPA chief, Bill Reilly. [click to continue…]

COP15: CEOs in Hamlet’s Castle

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. [click to continue…]

Why a coal guy is turning green

3. 12. 41.

Of all the companies in the U.S., Duke Energy is the 3rd largest emitter of CO2. Of all the companies in the world, Duke is the 12th biggest emitter. And if North Carolina-based Duke were a country, it would rank No. 41 in terms of greenhouse gas emissions, ahead of entire nations in Europe, Africa and Asia.

Rogers_JE_color_5x7And yet…Jim Rogers, Duke’s longtime president, CEO and chairman, is pushing as hard as anyone in corporate America to get a climate-change bill passed by Congress. His company helped the U.S. Climate Action Partnership get going, and he was key in getting some (but not all) utility-company CEOs to support carbon regulation.

“We’re very focused on legislation getting done in the U.S. this year,” Rogers says.

Indeed, Duke is “operating today as if climate legislation has already passed,” Rogers says. The company is investing in nuclear power, cleaner coal, wind, smart grid technology, efficiency and solar energy. Rogers says:

We’re in the most transformative period in the history of the power industry, Our mission is to decarbonize our entire fleet.

[click to continue…]

The Great Wall embraces Wall Street

Here comes a new carbon finance market, this one with Chinese characteristics.

In the latest sign that China takes the threat of global warming seriously, Chinese business executives with close ties to the government have launched a voluntary market in Beijing to buy and sell carbon credits.

Just don’t call it cap-and-trade, which is the regulatory approach embodied in the climate legislation pending in the U.S. Congress. The “cap” part of cap-and-trade remains anathema in China. As a developing country where billions of people earn less than $3,000 a year, China simply won’t accept mandatory limits on its emissions of greenhouse gases.

David Yarnold, Environmental Defense Fund
David Yarnold, Environmental Defense Fund

But the Chinese have enlisted western partners to build a market that will, as they put it, “limit and incentivize.” The theory is that a voluntary market in carbon credits will limit emissions by providing financial incentives to Chinese companies to develop renewable energy, promote energy efficiency and, above all, find environmentally-friendly ways to burn coal. Some of that money would come from outside China and would would come from within.

This could lay the groundwork for a mandatory market in the not-too-distant future.

That, at least, was my takeaway from a Low Carbon Conference held today in New York that brought together leaders of the world’s big stock exchanges, energy industry executives, environmentalists and experts in carbon finance. [Disclosure: I hosted the event for BlueNext, a French company that recently announced a partnership with the China Beijing Environmental Exchange to develop carbon trading in China.] [click to continue…]

Brainstorm Green 2009

Not long ago, Big Business and environmental activists were sworn enemies. No more. Today, companies and NGOs come together to work creatively around a variety of issues—from climate change to recycling to protecting the Amazon, from cleaning up dirty businesses like gold mining and to “greening” professional sports. One place they literally come together is at Brainstorm Green, FORTUNE’s conference about business and the environment, which will be back on Earth Day, 2009.

Helping to create Brainstorm Green was a highlight of my 12 years at FORTUNE, and I’m pleased that I’ll be back this year, co-chairing the event with my colleague Brian Dumaine, FORTUNE’s global editor. The program for this year’s Brainstorm Green is still a work in progress, but a group of us got a draft agenda down on paper last week and I’m confident that it will again be a lively, exciting, information-packed event. The theme, once again, will be: How can business help solve the world’s biggest environmental problems?

We’ll discuss and debate climate change regulation, “clean coal,” nuclear power, electric cars, the smart grid, investing in green, renewable energy, sustainable consumption (if there is such a thing), carbon finance and too many other topics to list here.

What makes Brainstorm Green special is the diversity of the crowd. This year, we’ll again hear from many of America’s most important environmental leaders, including Fred Krupp of Environmental Defense, Glenn Prickett of Conservation International, Mark Tercek of The Nature Conservancy (who was there last year on behalf of Goldman Sachs), David Hawkins of the Natural Resources Defense Council, Mindy Lubber of Ceres and Mike Brune of Rainforest Action Network. At least two dozen CEOs of big and medium-sized companies have agreed to speak, including Shai Agassi of Better Place (the electric car company), Ray Anderson of Interface, Carl Bass of Autodesk, David Crane of NRG Energy, Jeff Hollender of Seventh Generation, Fisk Johnson of S.C. Johnson, Donald Knauss of Clorox, Mike Morris of American Electric Power, Ralph Peterson of CH2M Hill, Jim Rogers of Duke Energy and Tom Werner of SunPower.

Other companies sending speakers include Wal-Mart, McDonald’s, Coca-Cola, Goldman Sachs, Mars, Intel, Boeing, McKinsey, the private-equity firm KKR and architectural firm HOK. That list is sure to grow.

We’ll also be joined by speakers whose ideas are shaping the sustainability debate. I’m looking forward to spending time with Paul Hawken, whose books have shaped much of my own thinking about business and the environment. The dynamic Van Jones, who is profiled in the current issue of The New York by Betsy Kolbert,  will talk about green jobs. The always-inspiring Janine Benyus, who spoke last year, will be back to show us how biomimicry works in practice. My friend Joel Makower, the guru of green business and author of Strategies for the Green Economy, will return as well.

Venture capitalists from some of America’s top firms and entrepreneurs touting exciting startups will round out the group. We’re hoping to attract senior officials from the new Obama administration as well.

You can find a full list of speakers on the Brainstorm Green website. That’s also the best place to propose new speakers or to sign up for the event. (FORTUNE screens all participants.) We’ll meet in a beautiful setting—the Ritz Carlton Hotel in Laguna Niguel, CA, and I’m looking forward to seeing many of you blogreaders there.