Energy Cost Reduction and Pollution Control Solutions for a Cleaner World

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