Will green finance ultimately be local?

What’s the best way to concentrate our money to fight climate change? At the national level? More subsidies for clean industries or incentives for individuals?

Today’s Green Inc blog post examines the idea that cities are the most likely agents for positive action against climate change, since the authors see “uncertain prospects for a global treaty in Copenhagen”, which means “that local communities will need to lead the way on climate change.”

The column’s authors pose the  idea that, “like politics, action on climate change is ultimately local”.

It is estimated that cities contribute somewhere between 30 and 41 percent of global greenhouse gas emissions. The estimate has a large range because no one is really certain of how to measure this particular statistic. Nevertheless, GHG emissions at even the lower end of that range makes cities key actors in reducing greenhouse gas emissions.

Nearly two years ago, we posted that cities would lead most positive progress on green building and climate change.

[Local governments] have become sustainability’s cowboys, driving their own resource, energy and climate change policies, since the federal government can not deliver a comprehensive enough solution that preserves their viability. Since real estate has been outed as the big consumer of city resources and energy services and the big contributor to regional carbon output, it is fair to say that investors will have to think about investment markets in terms of resource and energy sustainability in addition to classic real estate fundamentals so that they can remain relevant to their municipal partners.

As of this date, about 1,000 U.S. local governments have signed commitments reduce greenhouse gas emissions within their jurisdictions.

What could this mean for green finance? A lot, we believe.

We have just seen local governments flexing their muscle with a major share of U.S. stimulus funding going for local government initiatives for green buildings, energy efficiency retrofits, home weatherization and green jobs. Tax lien financing, a local government finance innovation, which is growing rapidly here in California, is catching on nationwide.

With banks still navigating a tough economy and not offering the kinds of products and amount of capital needed, there seems to be both need and opportunity for local governments to become primary suppliers and coordinators of the finance for sustainability.

If you agree with the Green Inc’s columnists’ analysis of the global climate change situation, they really don’t have much choice.

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Lisa Michelle Galley profiled as a “First Lady of Sustainability”

Yours truly has been featured along with fourteen other women in Sustainable Industries March ‘09 issue, within their profiles of the “First Ladies of Sustainability”.

Sustainable Industries sets the stage for the profiles as follows:

The sustainable business community, like any industry group, is a sum of its parts. Gender aside, the leaders in the space have spent years trying to convince stakeholders of the vast importance of adhering to triple-bottom-line economics.

Creating a shift in the way business is done and how success is measured takes an unconventional approach. Many of the women leaders that Sustainable Industries spoke with for this article attributed their success to their willingness to take chances and blaze uncharted territory.

Whether analyzing the financial risks of green building projects or assessing the marketability of a cleantech startup, creating the tools to help companies increase their energy efficiency or crafting the framework for a sustainable business curriculum, these women have laid the groundwork for systems that will be used for years to come.

For my part, its a great honor to be rubbing shoulders with some of sustainability’s Jedi Masters: Andrea Traber, Karla Bell, and Lynn Simon,  all of whom are deep experts on driving market transformation — and on a large scale.

Andrea is president of the Board of our US Green Building Council Northern California Chapter and director with international juggernaut KEMA.  Karla is advancing carbon reducing technologies on a global scale.  Lynn literally helped found the US Green Building Council.

One of the things that I learned early in my career is that when you are looking for a job, go and search for a boss you like.  Later, I figured out that if you are looking to make a difference in the world — go and find a teacher.

I’ve been quite fortunate to be in a business community with so many women like these who fearlessly advocate for community, country and planet, are respected experts in their disciplines and generously share what they know.

You can read the full article profiling all of the “First Ladies of Sustainability” here.

Green Roof Incentive in New York

Photocredit: dreamymo
Folks love the green incentives that have immediate, easily calculated cash value.

Environmental Leader (a green newsletter we dig) has put out the word on New York’s new green roof tax credit of $4.50/sf, up to $100,000 for installing a green roof. It’s structured as a one year credit off property taxes.

It comes out to an approximate 25% reduction off the cost of the roof — a significant value. I checked around with a couple of sources who said that this is a “decent estimate” of the savings. Which we took to mean that you need to factor in variability in the roof pricing — and hence, the credit’s actual value.

Not bad — a green roof in New York for 75% of the price. And that’s not including the heating and cooling benefits the roof brings to the building as well as the reduction of the heat island effect in the city.

Go Big Apple!

Persuasive ‘Everyday’ Sustainability Case Studies

To lots of companies, sustainability can seem like a pretty exotic exercise. This perception can make it hard for us to convince clients and colleagues about the benefits of green building. That may not have to be the case.

‘Tackling the Energy Monster’ was today’s Wall Street Journal report on how soaring energy prices have triggered a reality check among small businesses, which often pay higher utility rates than large companies and are less able to pass their cost increases on to their customers.

This article was packed with eight great case studies of specific ways, backed by cash results, that companies re-tooled their businesses to cut or avoid energy costs. I call these actions ‘everyday sustainability’ because they’re rather unflashy, but are accessible to many businesses and deliver long term positive results.

Here’s a partial list of the winning actions:

• Missouri delivery company: Using GPS-route mapping software from United Parcel Service, Inc. to eliminate excess miles driven by drivers. 25,000 miles were cut. Even though unleaded gas prices rose 31% last year, this company only experienced a 1% increase in fuel costs for that period (!). The company even saved more than that since the drivers were paid by the hour. Less miles driven = less payroll expense.

• Oregon shoe manufacturer: Had new facility built using designed-in energy saving options. The energy-saving improvements cost an additional $149,140. An energy audit revealed that the company saved $32,000 annually with the new facility. In addition to that, the new building qualified for $52,000 in state tax credits to offset the costs. The company figures it will recoup its entire (additional) investment within three years.

• San Francisco civil engineering firm: 40 employees and a second office in New York. Employees now travel 70% less than before due to web conferencing. The web camera and projector cost $70 and $850 respectively. The firm saves $30,000-$40,000 annually.

• Interest-free financing from public utility: Southern California Gas & Electric and San Diego Gas & Electric offer interest free loans of up to $50,000 to small-business customers if they use the funds for energy efficiency upgrades and equipment. That’s in addition to the free utility audit.

So, check the article out and add it to your arsenal of proof that sustainability initiatives are real world actions and save lots of money.

If you’ve got any good case studies to share with the rest of us, send them along so everyone else on the Green Journey can benefit from your good experience.

Galley Eco Capital Joins the Business Council on Climate Change Business Partnership. Takes Action To Reduce Greenhouse Emissions.

Galley Eco Capital has a history of taking action to protect the environment. They now join a list over 82 BC3 member companies dedicated to taking action to address global climate change, while maintaining a competitive bottom line. “Participating in the BC3 is a natural step in our commitment to both grow our business and be environmentally responsible” says Lisa Michelle Galley. “We are excited to work with other members of the BC3 to develop innovative, profitable business approaches that also directly address the growing threat of climate change.”

The BC3, a collaborative partnership with the Bay Area Council, the San Francisco Department of the Environment and the United Nations Global Compact, is poised to make the San Francisco Bay Area a model of commercial climate stewardship by inspiring leadership on the pressing issue of climate change, and giving business leaders the tools to reduce their GHG emissions. The BC3 recognizes that the business community has the power to significantly impact climate change, and it functions as an avenue for communication between companies that have stepped up to the plate to address this challenge. The BC3 seeks to inspire others to do the same, and to build a business movement for climate stewardship.

“The Bay Area has always been an engine of business innovation and growth combined with social responsibility and companies like Galley Eco Capital are a reflection of that environment and culture” said Andrew Michael, Bay Area Council Vice President of Sustainable Development. “They and other visionary BC3 members are proving that the protection of the environment is clearly aligned with the protection of profits and market share.”

The BC3 is built around five “Principles on Climate Leadership” which relate to the areas of: Internal Implementation, Community Leadership, Advocacy & Dialogue, Collective Action, and Transparency & Disclosure. These principles are founded on the belief that private business can shift practices to realize economic growth while maintaining environmental sustainability.

“The addition of new members gives us a great opportunity to redefine how business is conducted in the Bay Area,” says Jared Blumenfeld, Director of the San Francisco Department of the Environment, “and to show that we can surpass the status quo.” For additional information on the Business Council on Climate Change, contact: bc3@sfgov.org or for information on Galley Eco Capital visit: www.galleyecocapital.com

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