Walmart, Exxon, BP, and 25 Other Companies Put A Price On Carbon

by Guest Contributor Jeff Spross

Image Credit: Walmart image via vvoe / Shutterstock.com

Originally published on Climate Progress.

It turns out the White House and major American businesses may be converging on how to assess the damage greenhouse gas emissions do to the global climate.

According to a new report by the environmental data company CDP, in 2013 at least 29 companies either based or operating in the United States factored a price on carbon into their long-term business planning. And in 2010, the Obama Administration released the government’s estimates for that same price, to be used as a factor in rulemaking decisions by federal agencies.

The global warming driven by human-caused carbon emissions will come various results, including droughts, floods, heat waves, shifting weather patterns, stronger storms, disrupted food supplies and rising seas. The purpose of the price in both instances is to quantify the economic costs of those effects.

Significantly, the companies using an internal carbon price include the five oil giants — ExxonMobil, ConocoPhillips, Chevron, BP, and Shell — along with other notables like Google, Microsoft, General Electric, Walt Disney, Wells Fargo, DuPont, and Delta Air Lines.

The specific prices they estimated were also striking: $40 per ton of carbon emissions for BP; $60 for ExxonMobil, and $40 for Shell. Xcel Energy pegged it at $20, Walt Disney at $10 to $20, and ConocoPhillips’ estimate ran anywhere from $8 to $46 depending on various factors. The U.S. government’s midline estimates were $37 and $57 for 2015. CDP also reviewed the carbon prices already in place in other countries around the world, which generally fell into the same range — and in a few instances much lower and higher.

Currently, the United States does not put any price on carbon. The International Monetary Fund estimates that failure effectively subsidizes fossil fuels to the tune of $502 billion annually — the biggest of any country in the world. The result is a massive market distortion, because the costs of climate change are not being factored into the daily decisions and transactions of everyone in the economy. The most direct way to place a price on carbon is either a carbon tax or a cap-and-trade system like the one Congress considered in 2009 and then abandoned. But the regulations to cut carbon emissions from power plants would implicitly, if not directly, place a price on those emissions as well.

Of course, the businesses’ use of an internal carbon price is an act of self-interest rather than advocacy. CMS Energy Corporation, for instance, noted it factored into its decision to start up a natural gas power plant, and to begin shuttering several coal-fired ones. And the CDP report quotes many of the companies emphasizing the price’s use as a guide in investment and other decisions.

“It’s climate change as a line item,” Tom Carnac, North American president of CDP, told the New York Times. “They’re looking at it from a rational perspective, making a profit. It drives internal decision-making.”

Publicly, some of these companies — ExxonMobil in particular — have been long-time skeptics of climate change, and have financially supported efforts to beat back the policies aimed at addressing it. Many of those companies are also regular contributors to the Republican party, which opposes efforts to cut greenhouse gas emissions and has sought to derail the White House’s carbon price. Consequently, many observers on both sides of the issue see the companies’ internal use of a carbon price as a significant break between business’ practical self-interest and the ideological position of the GOP and its conservative supporters — a sign the concrete financial infrastructure that supports opposition to climate policy is simply tiring out.

Across the financial world, there’s growing concern that massive amounts of money are invested in fossil fuel reserves that can never be exploited. Bloomberg LP recently released a financial tool to help investors calculate their carbon risk, while movements across the United States and other countries are pushing institutions to disentangle themselves from fossil fuel production. Various carbon-pricing mechanisms are already operating in numerous countries, and the growth of renewable energy continues to rocket upwards. In other words, the need to account for carbon emissions’ climate damage is no longer seen as a mere internal question of government policy — it’s taking on a collective life of its own.

Being hard-nosed business leaders, Exxon Mobil, BP, Google, and all the rest of them are simply acknowledging that reality.

This article, Walmart, Exxon, BP, Walt Disney, & 25 Other Top Companies Put A Price On Global Warming Pollution, is syndicated from Clean Technica and is posted here with permission.

Google To ‘Buy’ 100% Of Electricity From 240 MW Texas Wind Farm

by Zachary Shahan — Special to JBS News

google-energy

Google has been leading the way on clean energy for years. Still, it isn’t resting on its laurels. The Internet giant “King of the Internet” as many of us in the industry call it, has just announced that it has signed a power purchase agreement to buy all of the electricity produced by a new wind farm in Texas, a giant 240 MW wind farm called Happy Hereford Wind Farm. The wind farm is near Amarillo, Texas — in case you know the area and are a bit curious.

This is a big agreement that boosts Google’s total agreements with wind farms to 540 MW. That’s pretty astounding. To put that in terms most people can relate to, that’s enough power capacity to supply up to 170,000 homes with electricity.

“The Happy Hereford wind farm, which is expected to start producing energy in late 2014, is being developed by Chermac Energy, a small, Native American-owned company based in Oklahoma,” Google’s Matt Pfile, Senior Manager of Data Center Energy and Location Strategy, writes. “The wind farm will provide energy to the Southwest Power Pool (SPP), the regional grid that serves our Mayes County, Okla. data center.”

Here are some more details on how this agreement and previous agreements like it are arranged:

The structure of this agreement is similar to our earlier commitments in Iowa and Oklahoma. Due to the current structure of the market, we can’t consume the renewable energy produced by the wind farm directly, but the impact on our overall carbon footprint and the amount of renewable energy on the grid is the same as if we could consume it. After purchasing the renewable energy, we’ll retire the renewable energy credits (RECs) and sell the energy itself to the wholesale market. We’ll apply any additional RECs produced under this agreement to reduce our carbon footprint elsewhere.

For more, check out the full Google post.

As I stated above, Google has been a pioneer in the use and even development of clean energy for years. Check out our entire Google archives for more. A few notable stories from 2013 include:

Google Teams Up With The Solar Airplane, Solar Impulse

Google’s Carbon Footprint Continues To Fall

Google Gobbles Up Entire Output Of New Swedish Wind Farm

Google Makes First Renewable Energy Investment In Africa

Google Buys Makani Wind Power (Kite Power Company)

And here’s a summary post I wrote in 2011 regarding Google’s clean energy investments: Google’s Clean Energy Projects (7 Big Ones)

But there’s actually much more there than all of these (over 100 stories!), so scroll through the archives for more.

This article, Google To “Buy” 100% Of Electricity From 240 MW Texas Wind Farm, is syndicated from Clean Technica and is posted here with permission.

About the Author

Zachary Shahan is the director of CleanTechnica, the most popular cleantech-focused website in the world, and Planetsave, a world-leading green and science news site. He has been covering green news of various sorts since 2008, and he has been especially focused on solar energy, electric vehicles, and wind energy for the past four years or so. Aside from his work on CleanTechnica and Planetsave, he’s the Network Manager for their parent organization – Important Media – and he’s the Owner/Founder of Solar Love, EV Obsession, and Bikocity. To connect with Zach on some of your favorite social networks, go to ZacharyShahan.com and click on the relevant buttons.

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