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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Industry groups were, in general, cautiously optimistic about President Joe Biden's commitment to lower the U.S. economy's greenhouse gas (GHG) emissions by 50% to 52% below their 2005 level by 2030, as announced at last week's two-day virtual summit. For the most part, the groups seemed to agree with the president that a decarbonized economy would lead to increased government investment in their industries (or adjacent ones), an expanding economy, new export opportunities, more tax credits and the prospect of job creation. But most groups said many questions still needed to be answered.
"America's 2030 target picks up the pace of emissions reductions in the United States, compared to historical levels, while supporting President Biden's existing goals to create a carbon pollution-free power sector by 2035 and net zero emissions economy by no later than 2050," according to a lengthy fact sheet circulated by the White House.
Aside from applauding the president's decision to rejoin the Paris Accords, last week's two-day summit of world leaders brought forth no full-throated "hoorays" from industry groups. Not surprisingly, environmental groups generally applauded the nation's new GHG-reduction goal, which is roughly double the level of CO2 emissions reduction committed to in 2015 by the Obama administration.
Marty Durbin, senior vice president of policy at the U.S. Chamber of Commerce (Washington, D.C.), said last week: "President Biden is setting out an ambitious goal. ... Achieving that goal while also supporting economic growth and job creation will require new technology and new policy that is durable and has the support of bipartisan members of Congress, consumers, business and other stakeholders. We will work with our members, the administration, and Congress to forge durable, bipartisan policy that puts us on a sustainable path to make significant and meaningful emission reductions."
"U.S. businesses are leading the world in pursuit of climate change solutions," Durbin continued, "and we see great opportunities to develop and export technologies that will help address a truly global challenge."
Jay Timmons, president and chief executive at the National Association of Manufacturers (Washington, D.C.), said, "Climate change is an issue our generation must tackle. Like past generational challenges -- world wars, the space race, the COVID-19 response and vaccine development -- manufacturers will lead the way and ensure our country emerges stronger. After all, it is manufacturers who will make the needed products and technologies: clean energy, carbon capture, batteries, microgrids, efficiency, advanced vehicles and more."
He said every $1 invested in manufacturing produces $2.79 in economic activity, which Timmons claimed was "the highest multiplier effect of any economic sector."
Like other trade group heads, Timmons said he needed to see more details. But at a top-line level, he seemed to say, he likes what he sees. "Manufacturing holds the key to solving this global challenge. ... Meeting President Biden's ambitious pledge will require manufacturing might and innovation, which means we will also need policies that keep manufacturing strong and competitive: historic infrastructure investment; a tax code that continues to promote investment, job creation and research and development; a diverse and reliable energy supply; incentives for workforce development; and more opportunities to export our innovative products and technologies to other countries."
Barry Russell, president and chief executive at the Independent Petroleum Association of America (IPAA) (Washington, D.C.), noted the increased use of natural gas has been a significant factor in driving down U.S. emissions of carbon dioxide (CO2) in recent years. "Because of the production and use of natural gas, the United States has reduced emissions more than any other country. IPAA supports the spirit of the Paris climate accord -- our industry serves a critical role in the necessary effort to reduce greenhouse gas emissions, and the United States must collaborate with other nations to meet global climate targets."
"IPAA believes the benefits of using natural gas and oil products help secure the economic well-being of citizens of the nation, particularly disadvantaged communities who are most threatened by high energy prices," Russel continued. "Similarly, with liquefied natural gas (LNG) exports to other nations, the U.S. oil and natural gas industry is helping more people improve their air quality while having access to safe, affordable and reliable energy."
"We recognize that more work needs to be done, and we welcome the opportunity to work with the Biden Administration as they consider other initiatives to reduce emissions."
The Wall Street Journal quoted Mike Sommers, chief executive of the American Petroleum Institute (API) (Washington, D.C.), as saying that the fact sheet issued by the White House "addresses the risks of climate change, but it doesn't address the key challenge of affordable and reliable energy." Cutting CO2 emissions by 50% in less than a decade would require "a very, very significant change into how the country gets its energy."
A dramatic expansion of electric vehicles would require more electricity, and that would likely mean greater use of natural gas, he said. Currently, natural gas generates about 40% of U.S. electricity. "It's a little bit fantastical to expect you'll have significant turnover in the fleet without a lot of power coming from the most reliable source out there," he told the Journal.
Climate change has split the API, with some members embracing low-carbon businesses, such as ExxonMobil Corporation (NYSE:XOM) (Irving, Texas), while others have stayed on the sidelines. Earlier this year, one large oil company, Total S.A., (Paris, France) said it would leave API over disagreements with the group's stances against electric-vehicle subsidies, carbon pricing and methane emission regulations.
More recently, another large oil company, Royal Dutch Shell Plc (NYSE:RDS.A) (The Hague, Netherlands) reportedly threatened to leave API over its climate policies.
Commenting on the Biden's GHG summit, leaders from some of the nation's major electricity trade groups were supportive. Tom Kuhn, president of the Edison Electric Institute (Washington, D.C.), the group of investor-owned electric utilities that generate about three-quarters of the electricity used in the U.S., noted that meeting the GHG-reduction goals set of by Biden "will require the participation of every sector of the U.S. economy, along with new technologies and supportive policies that are resource- and technology-inclusive, flexible and equitable."
He continued: "We will continue to push for ambitious reductions in carbon emissions in the decade ahead. At the same time, we will advocate for policies that accelerate innovation; help get critical transmission and energy grid infrastructure built more quickly; and recognize that electrification can help to reduce emissions cost-effectively in other sectors of the economy, particularly the industrial and transportation sectors."
Kuhn said investor-owned electric utilities "are committed to getting the energy we provide as clean as we can as fast as we can, without compromising the reliability or affordability that our customers value. We are leaders in reducing carbon emissions and are integral to the climate solution."
But the American Public Power Association (APPA) (Washington, D.C.), which represents about 2,000 locally owned electric utilities across the country, did not pledge support for Biden's initiative. Rather, it said it needed more details on how the initiative will unfold and be implemented. It also underscored the many questions remaining about implementation.
APPA was not the only trade group to complain that the Biden administration has not provided a detailed plan on how the overall goal will be met, but its neutrality on the initiative did stand out.
"It seems clear that the Environmental Protection Agency (EPA) will pursue it using the legal authority it has under the Clean Air Act (CAA) and other statutes," APPA said in a statement, "but emission reductions are also premised on funding contained in previously announced infrastructure plans."
It further noted that, "there are enforceable GHG standards for new fossil fuel-fired electric generating units (EGUs), but it is unclear how the administration will proceed following the (vacating) of the Affordable Clean Energy (ACE) Rule by the U.S. Court of Appeals for the D.C. Circuit. While the D.C. Circuit vacated both the ACE Rule and EPA's repeal of the Clean Power Plan, upon request, the court issued a partial mandate to stay the (vacating) of the Clean Power Plan until EPA can engage in new rulemaking."
It was unclear, APPA continued, what part of the contemplated 50% to 52% reduction of carbon emissions can be achieved through existing statutes and regulation, and what part is contingent upon new legislative authority and/or funding.
Though no trade groups contacted by Industrial Info said this, the sharp divisions and narrow Democratic majorities in the U.S. House and Senate likely makes enacting new laws to lower carbon emissions extremely difficult.
Industrial Info reached out to the Portland Cement Association (Skokie, Illinois) and the American Iron and Steel Institute (Washington, DC.) for comments the summit, but was unable to obtain comments.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
"America's 2030 target picks up the pace of emissions reductions in the United States, compared to historical levels, while supporting President Biden's existing goals to create a carbon pollution-free power sector by 2035 and net zero emissions economy by no later than 2050," according to a lengthy fact sheet circulated by the White House.
Aside from applauding the president's decision to rejoin the Paris Accords, last week's two-day summit of world leaders brought forth no full-throated "hoorays" from industry groups. Not surprisingly, environmental groups generally applauded the nation's new GHG-reduction goal, which is roughly double the level of CO2 emissions reduction committed to in 2015 by the Obama administration.
Marty Durbin, senior vice president of policy at the U.S. Chamber of Commerce (Washington, D.C.), said last week: "President Biden is setting out an ambitious goal. ... Achieving that goal while also supporting economic growth and job creation will require new technology and new policy that is durable and has the support of bipartisan members of Congress, consumers, business and other stakeholders. We will work with our members, the administration, and Congress to forge durable, bipartisan policy that puts us on a sustainable path to make significant and meaningful emission reductions."
"U.S. businesses are leading the world in pursuit of climate change solutions," Durbin continued, "and we see great opportunities to develop and export technologies that will help address a truly global challenge."
Jay Timmons, president and chief executive at the National Association of Manufacturers (Washington, D.C.), said, "Climate change is an issue our generation must tackle. Like past generational challenges -- world wars, the space race, the COVID-19 response and vaccine development -- manufacturers will lead the way and ensure our country emerges stronger. After all, it is manufacturers who will make the needed products and technologies: clean energy, carbon capture, batteries, microgrids, efficiency, advanced vehicles and more."
He said every $1 invested in manufacturing produces $2.79 in economic activity, which Timmons claimed was "the highest multiplier effect of any economic sector."
Like other trade group heads, Timmons said he needed to see more details. But at a top-line level, he seemed to say, he likes what he sees. "Manufacturing holds the key to solving this global challenge. ... Meeting President Biden's ambitious pledge will require manufacturing might and innovation, which means we will also need policies that keep manufacturing strong and competitive: historic infrastructure investment; a tax code that continues to promote investment, job creation and research and development; a diverse and reliable energy supply; incentives for workforce development; and more opportunities to export our innovative products and technologies to other countries."
Barry Russell, president and chief executive at the Independent Petroleum Association of America (IPAA) (Washington, D.C.), noted the increased use of natural gas has been a significant factor in driving down U.S. emissions of carbon dioxide (CO2) in recent years. "Because of the production and use of natural gas, the United States has reduced emissions more than any other country. IPAA supports the spirit of the Paris climate accord -- our industry serves a critical role in the necessary effort to reduce greenhouse gas emissions, and the United States must collaborate with other nations to meet global climate targets."
"IPAA believes the benefits of using natural gas and oil products help secure the economic well-being of citizens of the nation, particularly disadvantaged communities who are most threatened by high energy prices," Russel continued. "Similarly, with liquefied natural gas (LNG) exports to other nations, the U.S. oil and natural gas industry is helping more people improve their air quality while having access to safe, affordable and reliable energy."
"We recognize that more work needs to be done, and we welcome the opportunity to work with the Biden Administration as they consider other initiatives to reduce emissions."
The Wall Street Journal quoted Mike Sommers, chief executive of the American Petroleum Institute (API) (Washington, D.C.), as saying that the fact sheet issued by the White House "addresses the risks of climate change, but it doesn't address the key challenge of affordable and reliable energy." Cutting CO2 emissions by 50% in less than a decade would require "a very, very significant change into how the country gets its energy."
A dramatic expansion of electric vehicles would require more electricity, and that would likely mean greater use of natural gas, he said. Currently, natural gas generates about 40% of U.S. electricity. "It's a little bit fantastical to expect you'll have significant turnover in the fleet without a lot of power coming from the most reliable source out there," he told the Journal.
Climate change has split the API, with some members embracing low-carbon businesses, such as ExxonMobil Corporation (NYSE:XOM) (Irving, Texas), while others have stayed on the sidelines. Earlier this year, one large oil company, Total S.A., (Paris, France) said it would leave API over disagreements with the group's stances against electric-vehicle subsidies, carbon pricing and methane emission regulations.
More recently, another large oil company, Royal Dutch Shell Plc (NYSE:RDS.A) (The Hague, Netherlands) reportedly threatened to leave API over its climate policies.
Commenting on the Biden's GHG summit, leaders from some of the nation's major electricity trade groups were supportive. Tom Kuhn, president of the Edison Electric Institute (Washington, D.C.), the group of investor-owned electric utilities that generate about three-quarters of the electricity used in the U.S., noted that meeting the GHG-reduction goals set of by Biden "will require the participation of every sector of the U.S. economy, along with new technologies and supportive policies that are resource- and technology-inclusive, flexible and equitable."
He continued: "We will continue to push for ambitious reductions in carbon emissions in the decade ahead. At the same time, we will advocate for policies that accelerate innovation; help get critical transmission and energy grid infrastructure built more quickly; and recognize that electrification can help to reduce emissions cost-effectively in other sectors of the economy, particularly the industrial and transportation sectors."
Kuhn said investor-owned electric utilities "are committed to getting the energy we provide as clean as we can as fast as we can, without compromising the reliability or affordability that our customers value. We are leaders in reducing carbon emissions and are integral to the climate solution."
But the American Public Power Association (APPA) (Washington, D.C.), which represents about 2,000 locally owned electric utilities across the country, did not pledge support for Biden's initiative. Rather, it said it needed more details on how the initiative will unfold and be implemented. It also underscored the many questions remaining about implementation.
APPA was not the only trade group to complain that the Biden administration has not provided a detailed plan on how the overall goal will be met, but its neutrality on the initiative did stand out.
"It seems clear that the Environmental Protection Agency (EPA) will pursue it using the legal authority it has under the Clean Air Act (CAA) and other statutes," APPA said in a statement, "but emission reductions are also premised on funding contained in previously announced infrastructure plans."
It further noted that, "there are enforceable GHG standards for new fossil fuel-fired electric generating units (EGUs), but it is unclear how the administration will proceed following the (vacating) of the Affordable Clean Energy (ACE) Rule by the U.S. Court of Appeals for the D.C. Circuit. While the D.C. Circuit vacated both the ACE Rule and EPA's repeal of the Clean Power Plan, upon request, the court issued a partial mandate to stay the (vacating) of the Clean Power Plan until EPA can engage in new rulemaking."
It was unclear, APPA continued, what part of the contemplated 50% to 52% reduction of carbon emissions can be achieved through existing statutes and regulation, and what part is contingent upon new legislative authority and/or funding.
Though no trade groups contacted by Industrial Info said this, the sharp divisions and narrow Democratic majorities in the U.S. House and Senate likely makes enacting new laws to lower carbon emissions extremely difficult.
Industrial Info reached out to the Portland Cement Association (Skokie, Illinois) and the American Iron and Steel Institute (Washington, DC.) for comments the summit, but was unable to obtain comments.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
