Michael W. Taylor, Honeywell: Government (1) + Business (1) = 3


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Michael W. Taylor, Vice President of Sales for Honeywell

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  • Michael W. Taylor, Honeywell: Government (1) + Business (1) = 3

    1. 1. Global Warming Carbon Clinton Climate Initiative (CCI) Government (1) + Business (1) = 3
    2. 2. Setting the Stage for the “Perfect Storm” <ul><li>Energy Consumption </li></ul><ul><li>China, India </li></ul><ul><li>Energy Cost </li></ul><ul><li>Greenhouse Gas Emissions </li></ul><ul><li>Global Warming </li></ul>Quality of Our Lives Today, Our Children Tomorrow
    3. 3. The Case for Change……. We Know What We Need to Do…..
    4. 4. Reduce 2030 emissions by 2.9 Gigatons cost <$50/ton Source: McKinsey; “Reducing US Greenhouse Gas Emissions: How much at What cost?” We Have Options.… McKinsey mid-range curve Abatement cost <$50/ton 0 30 60 90 -120 -220 -30 -60 -90 3.2 Cost Real 2005 dollars per ton CO 2 e 1.0 1.2 1.4 1.8 2.0 0.2 2.2 2.4 2.6 2.8 3.0 1.6 0.4 0.6 0.8 Residential electronics Commercial electronics Residential buildings – Lighting Commercial buildings – LED lighting Fuel economy packages – Cars Commercial buildings – CFL lighting Cellulosic biofuels Industry – Combined heat and power Existing power plant conversion efficiency improvements Conservation tillage Fuel economy packages – Light trucks Commercial buildings – Combined heat and power Coal mining – Methane mgmt Commercial buildings – Control systems Distributed solar PV Residential buildings – Shell retrofits Nuclear new-build Natural gas and petroleum systems management Active forest management Afforestation of pastureland Reforestation Winter cover crops Onshore wind – Medium penetration Coal power plants – CCS new builds with EOR Biomass power – Cofiring Onshore wind – High penetration Industry – CCS new builds on carbon-intensive processes Coal power plants – CCS new builds Coal power plants – CCS rebuilds Coal-to-gas shift – dispatch of existing plants Car hybridi-zation Commercial buildings – HVAC equipment efficiency Solar CSP Residential buildings – HVAC equipment efficiency Industrial process improvements Residential water heaters Manufacturing – HFCs mgmt Residential buildings – New shell improvements Coal power plants– CCS rebuilds with EOR Potential Gigatons/year Commercial buildings – New shell improvements Afforestation of cropland Onshore wind – Low penetration
    5. 5. Abatement legislation already identified Source: McKinsey; “Reducing US Greenhouse Gas Emissions: How much at What cost?” Policy, Will, Affordability……..
    6. 6. Policy, Legislation, Business, …… A winning combination <ul><li>Energy Conservation </li></ul><ul><ul><li>ESPC Legislation </li></ul></ul><ul><ul><li>Procurement Policies </li></ul></ul><ul><li>Renewable Energy </li></ul><ul><ul><li>Germany, Spain, CA </li></ul></ul><ul><ul><li>U.S. Solar ITC’s </li></ul></ul>Net 1990 to 2000 ESPC benefits estimated at $1.6B* <ul><li>Energy Conservation </li></ul><ul><ul><li>Funding Options </li></ul></ul><ul><ul><li>Performance Risk </li></ul></ul><ul><li>Renewable Energy </li></ul><ul><ul><li>New product development </li></ul></ul><ul><ul><li>Ramped Capability </li></ul></ul>Political Victories Business Victories $ Source: LBL 2005 ESCO Review
    7. 7. The Clinton Climate Initiative (BRP) <ul><li>Building Retrofit Program (BRP) launched May 2007 in NYC </li></ul><ul><ul><li>Buildings account for 70% of cities emissions </li></ul></ul><ul><li>Utilize Performance Contracting </li></ul><ul><ul><li>Similar to US DOE standard ESPC </li></ul></ul><ul><ul><li>Proven, self regulating process </li></ul></ul><ul><ul><li>Aligns interests of all parties </li></ul></ul><ul><li>CCI Customers: </li></ul><ul><li>Energy Service Companies (ESCO’s) as Architects/Design Engineers/General Contractors/Performance Guarantors </li></ul><ul><ul><li>Where Politics and Business Work! </li></ul></ul>
    8. 8. <ul><li>Capital Access </li></ul><ul><li>Deployment Investment </li></ul><ul><li>Low Cost Renewable Energy </li></ul><ul><li>Higher Risk Thresholds </li></ul><ul><li>Realistic ROI expectations </li></ul>Our challenge…Think Big…. Act Now! <ul><li>Expand ESPC legislation </li></ul><ul><li>Long Term Tax incentives </li></ul><ul><li>Legislation Sunsets </li></ul><ul><li>Mandate agency targets </li></ul><ul><li>Accountability </li></ul><ul><li>Uniform energy efficiency building codes </li></ul>Political Business “ The time to repair the roof is when the sun is shining” - JFK
    9. 9. Thank you!