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Using a Sector Approach to Address Energy and Climate Challenges. Symposium on Innovating for Sustainable Results January 9, 2008. Why use a sector approach?.
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Using a Sector Approach to Address Energy and Climate Challenges Symposium on Innovating for Sustainable Results January 9, 2008
Why use a sector approach? • Technical, structural, and economic differences among industrial sectors can determine which strategies are most effective in producing environmental progress at lowest cost. • Technical and economic similarities among firms within a sector, along with common trade and technical association memberships, can make sector-wide strategies effective and far-reaching.
EPA’s Sector Strategies Division • Works with trade associations and firms in 13 key industries, including chemicals, oil and gas, cement, agribusiness, forest products, and others. • Crafts analyses, voluntary agreements, and informs policy across environmental programs. • Sector-level measurement of environmental impacts is critical to our approach.
Impacts from Energy Use • March 2007: published “Energy Trends in Selected Manufacturing Sectors” • examines criteria air pollutant and CO2 emissions from energy generation on-site. • examines barriers and opportunities for better environmental outcomes.
Key findings • Top 10 sectors account for 85% of all industrial energy use. • Primary fuel use varies by sector and geography, as do best opportunities and barriers to progress.
GHG Impacts • Under review: sector-specific GHG analysis, including process emissions, fuel combustion, and upstream electricity. • One-third of GHG emissions are from purchased electricity, which significantly affects the relative impacts of sectors. • Emissions from the construction and food are relatively larger than generally assumed.
What are the Big Questions for formulating industrial GHG strategies? • Which sectors are the biggest emitters? • Which sectors have the greatest opportunities to reduce emissions? • Which sectors have barriers to improvement that EPA can do something about? • How do we set sector emission baselines for potential trading, credits, standards?
Next Steps • Draft sector GHG emissions analysis out for comment later this month. • Ongoing discussions with trade associations regarding reduction goals. • Internal EPA workgroup looking at regulatory barriers to progress, greater program coordination.
Contact Paula Van Lare Forest Products Sector Liaison Sector Strategies Program Vanlare.paula@epa.gov 202-566-2951