Global Movement
Global concerns about the environment, renewable energy, energy policy, and climate change are reflected everywhere. The environment makes headlines daily, is a key component of political campaigns, and fuels conversations in our homes and classrooms. No longer are these topics of choice only for scientists and "tree-hugging environmentalists". Taking responsibility for our impact on the planet has become a world-wide movement and supporting renewable energy and carbon offsetting has taken center stage as a key component to reducing that impact.
No longer are these topics of choice only for tree-hugging environmentalists and scientists. Reducing our impact on the planet has become a world-wide movement.
International
The leading effort to combat global climate change was created by the international community in 1997, known as the Kyoto Protocol. The Kyoto Protocol called for the developed countries around the world to reduce the six major greenhouse gasses below 1990 levels by 2012. More information about individual country commitments is available from the United Nations Framework Convention on Climate Change (UNFCC). The Kyoto Protocol went into force in 2005 after enough countries signed on to its reduction targets.
This has led to an active market for the reduction of greenhouse gasses by countries directly as well as through an active offset and allowance trading market under the Clean Development Mechanism (CDM), the European Union Allowance Emission Trading Scheme, and other systems. In 2008, the carbon reduction market was valued at over $118 Billion dollars. The Kyoto Protocol expires in 2012 and the international community is actively working to develop the next agreement for greenhouse gas reduction to implement starting in 2012.
The international community has also actively pursued the development of renewable energy. Global wind power installations surpassed 120,800 MW of capacity in 2008 with record installations around the world totaling more than 27,000 MW in 2008, a 28.8% increase over 2007. Charts showing wind installations and growth across the world are available from the Global Wind Energy Council.
U.S.
The United States has made progress toward a more sustainable energy system with the advancement of Renewable Portfolio Standards (RPS) and recent Federal Government action to build on the active voluntary markets for renewable energy. There are now 28 states in the U.S. with mandatory RPS programs and 5 more with a renewable energy goal.
2008 was a banner year for wind development in the United States. There were 8,358 MW of new wind power generating capacity (enough to serve over 2 million U.S. homes) installed in 2008. This brought the United States into first place in the world in terms of total installed wind capacity with 25,170 MW installed through the end of 2008.
The American Recovery and Reinvestment Act (ARRA) passed in early 2009, also known as the stimulus bill, had significant components dedicated to the advancement of energy efficiency and renewable energy development including funding for transmission that is vital for getting our best renewable resources connected to our cities and areas of high power demand, and a three-year extension of the Production Tax Credit (PTC) - a critical component of financing renewable projects. This is the first time the PTC has been extended for three years and helps to give a level of certainty to project developers that will help spur more renewable energy investments.
States have been taking the lead on the advancement of carbon reduction programs in the United States. After the Federal Government rejected the Kyoto Protocol, states in the Northeast were the first to create a legally binding cap and trade in the United States, known as the Regional Greenhouse Gas Initiative (RGGI). RGGI began January 1, 2009 as the first limit on carbon emissions in the United States and has successfully executed a number of auctions for allowances, requiring utilities emitting greenhouse gasses to buy permits for those emissions with the auction proceeds being reinvested in renewable energy and energy efficiency.
Other efforts underway include the Western Climate Initiative AB32 (the California Global Warming Solutions Act), and the Midwestern Greenhouse Gas Reduction Accord. These efforts are regional or state level efforts to create a cap on carbon emissions and begin limiting them in the coming years. Furthermore, other states and many companies have started to calculate and report their carbon emissions through entities like the Climate Registry.
Meanwhile the voluntary markets for both renewable energy and carbon offsets continue to flourish in the United States with individuals and companies making the choice to make a difference.
Businesses
Most people don't know that 50% of the demand for renewable energy credits (RECs) in the U.S. comes from voluntary purchases by businesses. According to the National Renewable Energy Laboratory's report in October 2008, over 50% of the green power purchases in 2007 were from voluntary customers - exceeding the demand of RPS mandates by States. Customers making a choice have contributed to the significant development of renewable energy in recent years.
The Green Building sector has experienced incredible growth in the last decade. By the end of 2005, there were over 3,300 registered and certified LEED projects in 17 countries. Today (2009), there are more than 20,000 LEED projects in nearly 100 countries. Many of these building project purchases of green power for LEED has significantly contributed to the demand for renewable energy in the U.S., as well as for products that are certified to be carbon neutral.
Individuals
Thousands of individuals and families across the country choose to pay a little extra each month to support clean energy production and reduce their environmental impact. Studies show that more than 80% of individuals surveyed in the U.S. would pay extra for goods and services from a company that demonstrates a commitment to sustainability. "Green" events from cocerts like Live Nation to galas like the Presidential Inaugural Ball are becoming more and more expected by consumers.
