| Sources of air pollution who wish to reduce | | | | billion in 1978 to an estimated $110 billion |
| their emissions now have many exciting | | | | in 1993, in current dollars -- according to |
| options available to them. These options | | | | government figures. Porter claims innovation |
| include installing more advanced pollution | | | | offsets have sometimes actually reduced |
| control technology, switching to cleaner | | | | costs. For example, he says that when U.S. |
| fuels, improving energy efficiency, and | | | | law forced firms to get rid of |
| increasing renewable energy use. Such | | | | chlorofluorocarbons used to clean printed |
| measures have been successful. Emission | | | | electronic circuit boards, Raytheon developed |
| reductions from energy efficiency and | | | | a reusable cleaning agent that increased |
| renewable energy, produce health and | | | | average product quality as well as lowering |
| environmental benefits by reducing amounts of | | | | operating costs. |
| sulfur dioxide, carbon dioxide, nitrogen | | | | |
| oxides, lead, mercury, and particulate matter | | | | However researchers at 'Resources for the |
| emissions from the air. | | | | Future' spoke to the managers of some of the |
| | | | firms cited by Porter. They found that while |
| Sources of air pollution who succeed in | | | | "each manager acknowledged that in certain |
| reducing their emissions may receive credit | | | | instances a particular regulatory requirement |
| for their reductions. Emission reduction | | | | may have cost less than had been expected, or |
| credits (ERCs) reward those who take action | | | | perhaps even paid for itself, each also said |
| to reduce their pollutant emissions and | | | | that ...on the whole, environmental |
| therefore encourage pollution reduction. | | | | regulation amounted to a significant net cost |
| Credits for emission reductions provide an | | | | to his company." |
| incentive to find the most cost-effective way | | | | |
| to reduce emissions. Once an emission | | | | They estimate that innovation offsets total |
| reduction credit is created, it can be sold | | | | less than 2 percent of what firms spend |
| on the open market. | | | | complying with environmental rules. |
| | | | |
| American industry claims that pollution | | | | Some projects are currently provided in |
| control efforts significantly reduce | | | | collaboration with Climate Care, a world |
| productivity by increasing their costs. Yet | | | | leader in the provision of sustainable |
| some experts say that controlling pollution | | | | offsets. These projects either use |
| can actually pay for itself through what are | | | | technologies that reduce emissions at source |
| called "innovation offsets." | | | | or remove greenhouse gases from the |
| | | | atmosphere by investing in reforestation. Our |
| Proponents of this idea, such as Michael E. | | | | technology projects invest in renewable |
| Porter of Harvard University, say current | | | | energy or in energy efficiency.These projects |
| pollution controls have prodded firms to | | | | not only remove greenhouse gases from the |
| become more efficient and invest in research | | | | atmosphere, they also enhance ecosystems and |
| and development that creates new | | | | provide wider benefits to the people living |
| technologies. As a result, U.S. manufacturers | | | | around them. |
| may actually enjoy a competitive advantage | | | | |
| over foreign industries that haven't been | | | | There has been a lot of debate about whether |
| forced to innovate. The same could be true | | | | reforestation projects should allowed as |
| for measures to reduce emissions of | | | | carbon offsets (The Guardian, 2004). Our |
| greenhouse gases that may be causing global | | | | approach is to support the development of a |
| warming. | | | | new Gold Standard for offsets, which excludes |
| | | | most forestry projects. Led by WWF, this |
| Whether innovation can offset the cost of new | | | | approach has been completed for large scale |
| pollution controls is important to | | | | Clean Development Mechanism projects. A |
| consideration of the global warming treaty. | | | | revised version of the Gold Standard is |
| | | | currently under development for smaller |
| Annual spending on pollution abatement and | | | | projects and we are committed to using this |
| control in the U.S. rose from under $40 | | | | as the benchmark for all new offsets. |