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Five powerful climate policies can quickly cut emissions and boost the economy in any state

Minnesota just passed a 100% clean power bill with one of the nation’s fastest timelines for transition — by 2040. With its bountiful wind resources, a surprising amount of solar power, and a strong clean energy manufacturing base, this policy will secure the North’s star state is the nation’s leader in high-paying clean energy jobs.

As newly elected climate advocates take their seats in state houses and governorships nationwide, many are considering bold climate and clean energy policies, some as ambitious in Minnesota.

But where do they start?

New research using Energy Innovation Policy & Technology® and RMI’s Energy Policy Simulator (EPS) modeling tool identifies five climate and clean energy policies to reduce dangerous carbon emissions, strengthen local economies and improve public health — independently from the State.

Energy Innovation® and RMI have established EPS models for each of the 48 contiguous states and used the models to uncover the most impactful climate policies for state policymakers to consider.

Emission profiles for six countries.

Energy Innovation Policy & Technology LLC®

Looking at Louisiana, Michigan, Minnesota, New Mexico, Pennsylvania and Wisconsin — states with vastly different economies and sources of emissions — the modelers found that just five actions can reduce climate pollution by at least 50% and up to 90% by 2050, during Thousands of jobs will be created and lives saved through vastly improved air quality.

The five landmark guidelines – a clean electricity standard, zero emission vehicle (ZEV) standards, clean building equipment standards, industrial emissions standards and methane standards – are already being used in several states and may be adopted or strengthened in many others.

And the Anti-Inflation Act’s historic investment in clean energy means adopting bold government climate action is more cost-effective than ever. With a clear mandate from voters and data-backed evidence showing the power of climate policy to clean our air, spur economic growth and free consumers from fossil fuel volatility, now is the time to act.

A powerful tool for powerful policies

Energy Innovation® and RMI have jointly developed 48 government EPS models to help policymakers make data-driven climate policy decisions. The peer-reviewed, open-source EPS models assess the impact of dozens of climate and clean energy policies on carbon emissions, the economy, and public health. The models are built using publicly available state or federal data sources.

Using the new government EPS models, the researchers found five policies that are highly effective in reducing emissions while adding billions to their economies.

Clean Power Standards are a widespread and successful policy to reduce emissions from electricity generation, requiring an increasing proportion of electricity to be produced from zero-emission or renewable sources. The EPS health analysis modeled a standard of 80% clean power by 2030, which should increase to 100% clean by 2035. In Pennsylvania, for example, the clean power standard generated the largest share of emission reductions.

political scenario.Energy Innovation Policy & Technology LLC®

Separate studies have found that a rapid transition to clean energy can be reliable, save money and create jobs. Rapidly phasing out dirty energy sources by 2030 is also necessary to meet US climate pledges and align with global efforts to secure a livable climate. Though 29 states have some sort of clean electricity standard on their books, few are aiming for a 2035 target, so climate advocates should push for faster transitions.

ZEV standards It has been around for more than three decades, and 15 states have already adopted some form of clean car standards. They’re a proven way to increase the number of new clean cars on the road each year. This EPS modeling evaluated the impact of requiring all new light-duty vehicles to be zero-emissions by 2035 and all heavy-duty vehicles by 2045. Transportation is now the largest source of CO2 emissions in the United States and a major source of toxic pollution, which is why the transition to electric vehicles (EVs) is essential to protecting climate and health. In Wisconsin, a ZEV standard would contribute about 20% of the total emission reductions resulting from the top five guidelines.

Scenario.Energy Innovation Policy & Technology LLC®

Many states are realizing the benefits of ZEV standards to reduce the cost of new electric vehicles, ensure their customers have a wider variety of models to choose from in their state, and create new manufacturing jobs. Delaware, Massachusetts, New York, Oregon, Vermont and Washington have already moved to adopt California’s 100 percent ZEV sales standard, and about a dozen states will be considering following suit this year – and with it a good opportunity for Create climate protection measures.

Clean Building Equipment Standards require all electrical equipment in new residential and commercial construction or renovations introduced to existing buildings over time. Researchers modeled ever-increasing standards that will require only electrical equipment in new and existing buildings by 2035. They found that clean buildings alone would contribute 25% of the total emission reductions from Michigan’s five power generation guidelines.

Scenario.Energy Innovation Policy & Technology LLC®

Many cities are introducing electrical-only codes for new construction, and Washington state building codes were recently updated to require electrical space and water heating for all new buildings. As states consider measures to reduce emissions from buildings, this standard should provide a model for new regulations and standards.

Industrial emission standards address a neglected but significant source of carbon emissions: industries such as iron and steel, chemicals and plastics, and cement. Although no state currently has an industry-specific emissions standard on its books, emissions standards have been used to reduce pollution from other sources for decades. In this case, such a standard would create incentives to switch industrial process heat from fossil fuels to clean electricity or hydrogen.

Scenario.Energy Innovation Policy & Technology LLC

States must not forget industry as they work to reduce emissions, especially for states with large industrial sectors. In Louisiana, for example, industrial emissions account for two-thirds of the state’s total emissions, and this one policy would reduce more of the state’s emissions than the other four policies combined. This policy goes hand-in-hand with economic growth: Louisiana would create about 60,000 additional jobs through this policy in 2030.

methane emission standards require that methane leaks be identified and the methane captured and destroyed. Methane is a dangerous climate pollutant, producing about 28 times more than carbon over a 100-year period. Therefore, it is important that all states – especially states with high oil and gas production – establish strict methane emission standards.

Scenario.Energy Innovation Policy & Technology LLC

In 2014, Colorado became the first state to require the oil and gas industry to find and fix methane leaks, and its highly successful policy has served as a blueprint for other states and the US Environmental Protection Agency. In New Mexico, the modeled methane standards would contribute 24% of the total emissions reductions resulting from the five policies.

A strong climate policy allows the economy to grow and saves lives

Smart climate policies are essential to boost government economies, attract billions in new investments and create career opportunities in the emerging clean tech industry. A demonstration of this effect is happening right before our eyes: The Inflation Reduction Act, by far the most ambitious climate change policy in US history, has already boosted $50 billion in private investment and created 100,000 jobs since it was passed last August.

The EPS analysis finds that these five climate actions alone would create between 13,000 and 118,000 new jobs annually in each evaluated state in 2030. The economies of the states would also grow by 1% to 3% in 2030 and 3% to 7% in 2050.

Scenario.Energy Innovation Policy & Technology LLC®

Cleaner energy would prevent between 90 and 3,800 asthma attacks and 400 to 20,000 sick days a year in the six federal states examined. The five policies combined would also save up to 300 lives each year through reduced pollution in the states evaluated, depending on the state.

With a clear climate mandate, it’s time to get to work

The midterm elections brought new climate champions into state buildings across the US. These leaders now have a new modeling tool that can help them prioritize the most effective climate policies while saving consumers money and creating thousands of new jobs.

New climate policies are being considered in California, Colorado, Michigan, New York, Pennsylvania, Rhode Island, Vermont, Washington and elsewhere. As decision-makers work to meet both climate and economic goals simultaneously, these powerful guidelines are sure to deliver results.

We are a nonpartisan climate policy think tank that delivers high-quality research and original analysis to help policymakers make informed energy policy decisions. We are accelerating the clean energy transition by supporting the policies and strategies that are most effective in reducing greenhouse gas emissions.

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