Carbon Xprint at the EPA Clean Power Plan Public Hearing – Pittsburgh PA – August 1, 2014
Testimony before the EPA Clean Power Plan Public Hearing in Pittsburgh, PA on August 1, 2014.
I am seeking consideration for Carbon Xprint as a viable carbon mitigation strategy.
Carbon Xprint is a patent pending process that certifies carbon allowances by making a socially responsible investment in renewable energy and energy efficiency. A company or individual offset their carbon footprint by buying a term deposit or a bond from a financial institution or utility. The instrument is priced at the cost of one ton of greenhouse gas. If one ton of GHG is $25 then ten tons would be $250. The purchase certifies that the entity took action for their GHG emissions. The financial institution pools these deposits and dedicates this pool of money to finance energy efficiency and renewable energy projects. At the end of the term the entity gets their money back plus interest.
Quick Recap
A company or individual has a need or desire to reduce their Carbon Footprint.
They measure their carbon footprint.
Purchase Carbon Xprint CDs or Bonds based on tons of GHG
They are certified for taking responsibility for their GHG
The money is used to finance GHG reduction projects.
At the end of the term the purchaser gets their money back plus interest.
How can Carbon Xprint help EGUs meet carbon pollution limits? The utility can simply buy Carbon Xprint CDs and bonds as carbon allowances from financial institutions to reach the EPA imposed limit. Their money would be tied up for some time but it would get it back with interest. During the time the money is tied up it would be creating renewable energy, energy efficiency, and reducing the amount of greenhouse gases. That is the ultimate goal of the EPA proposal.
The Carbon Xprint process is flexible.
Down the road the EGU could use the capital and interest earned from Carbon Xprint instruments for a down payment on their own GHG reduction project.
They could donate the bonds as part of their charitable giving.
The Utility could also use the Carbon Xprint process to sell Utility Revenue Bonds raising capital dedicated to creating renewable energy, energy efficiency, storage, smart grids, and other greenhouse gas reductions projects. Since the utility and their customers share responsibility of creating carbon pollution, they could share carbon allowances. The sale of bonds purchased by the customers would be used as allowances against the utilities carbon pollution limit set by the EPA. The customers could purchase these bonds manually or they could be automatically purchased on their bill each time their energy usage created one ton of greenhouse gas.
Advantages over Cap and Trade and Renewable Energy Credits.
With Carbon Xprint the price of carbon is stable.
It does not require a complex trading structure.
To change behavior, the approach of Cap-and-trade and RECs is either punishment for actions taken in the present and/or reward for actions taken in the past. By paying penalties, these approaches make it harder for the company to achieve imposed limits. With these approaches money is paid to existing renewable energy and efficiency.
Carbon Xprint’s flexibility and ROI make it easier for companies to stay competitive and achieve imposed limits. Money is invested in creating new renewable energy and energy efficiency. With Carbon Xprint the use of standardized loans such as Investor Confidence Project leads to the securitization and sale of those loans, recycling those monies for additional new greenhouse gas reduction projects.
The current approaches are defensive postures designed to hold our ground. A successful approach will be one that is on the offensive, creating, building progressing and gaining new ground. Nothing motivates like progress. Carbon Xprint addresses two of climate changes biggest needs. The need to take action for our carbon pollution and the need for trillions of dollars in investment to change our energy infrastructure. It rewards action today and gets money to where it is needed to do the most good, creating energy efficiency and renewable energy. It is a simple, flexible, and profitable approach. We can have a strategy that rewards action and promotes growth.
