Memo for the Next Governor of Massachusetts: Extending The Commonwealth s Leadership on Climate Change

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1 Memo for the Next Governor of Massachusetts: Extending The Commonwealth s Leadership on Climate Change Document Purpose The purpose of this document is to provide the Commonwealth s next Governor with background on the Boston Green Ribbon Commission, and recommend steps the new Governor can take to continue and strengthen Massachusetts leadership on climate action. The Green Ribbon Commission is a voluntary network of 35 business and civic leaders convened by Mayor Walsh and Amos Hostetter of the Barr Foundation to support the City in its implementation of the Climate Action Plan. The Commission represents all of the key sectors in the city including the public sector, health care, commercial real estate, higher education, utilities, hospitality, finance, worship, and NGOs. The Commission provides advice to the City on the design of the plan; organizes sectors to align their operations with greenhouse gas emissions and climate preparedness goals; and shares best practices and successes. A list of the Green Ribbon Commission members is included as Attachment 1. The work of the GRC is supported by a coalition of six local foundations. Why We Are Committed to Aggressive Climate Action We believe that the science of climate change is unequivocal climate change is real; it is primarily caused by human activity; and it will create catastrophic disruption if it is not promptly addressed. We have not come to this conclusion lightly. We have listened to the best scientific advice and considered many competing points of view. As business and civic leaders, we have concluded that we have a responsibility to provide leadership on this issue. Our leadership has two core goals: Managing the Unavoidable Reduce our risks from inevitable changes caused by global warming (sea level rise, extreme weather, disease, etc.) Avoiding the Unmanageable Reduce our greenhouse gas emissions to set an example to the world to avoid even worse impacts that could exceed our capacity for adaptation. These goals are both embodied in the City of Boston s Climate Action Plan, and the State s Clean Energy and Climate Plan. Both plans include strategies for reducing emissions (25% by 2020 and 80% by 2050) and preparing for climate disruptions. Enthusiastic participation in the Green Ribbon Commission has demonstrated that business and civic leaders support a proactive approach to the challenges of climate change and the use of aggressive goals and targets to spur innovation and creativity in building our capacity to thrive as a global city under radically changed circumstances. 1

2 Boston and the Commonwealth are National Leaders on Climate Action Boston and the Commonwealth of Massachusetts are already recognized as national leaders in responding to the challenges of global climate change. The city has set goals and taken action to reduce our city s carbon footprint, to spark innovation and growth in the region s clean energy economy, and to prepare Boston for the consequences of a changing climate. This work places Boston in a small cohort of aggressive urban innovators (including New York City, Seattle, Chicago, Portland, San Francisco and others) that are showing by example how to simultaneously reduce greenhouse gas emissions, prepare for climate disruptions, and improve the quality of life in our urban centers. In 2013, the American Council for an Energy Efficiency Economy (ACEEE) ranked Boston as the number one city in the country for energy efficiency. The work of the Green Ribbon Commission played an important role in this number one ranking. The Commonwealth has received the number one state ranking on energy efficiency from ACEEE for three years in a row. The Green Communities Act, the Global Warming Solutions Act, and the state s leadership in the Regional Greenhouse Gas Initiative (RGGI) have put it in the forefront of states that are showing the way to a prosperous and resilient low carbon future. Leadership Is Critical To Our Global Competitiveness Climate leadership brings with it important economic and quality of life opportunities. The leading global regions in the world are all competing for scarce talent and investment and this investment is increasingly flowing to regions that master the art of the triple bottom line a high quality of life; green communities with clean air, open space, walkable neighborhoods, energy efficient systems and reduced carbon emissions; and a growing jobs base solidly anchored in the emerging clean energy economy. These regions are resilient, adaptable and vibrant the places where young, innovative talent wants to live responsibly and create wealth. Boston and the Commonwealth need to be at the forefront of this global leadership to maintain and grow our prosperity. The benefits to Boston and the Commonwealth from taking a proactive leadership approach to these challenges are multiple: Improved resilience that reduces risks and protects people, neighborhoods, buildings and other key assets from harm. Cost savings for property owners, tenants and taxpayers. Creation of new jobs and businesses in the clean technology sector. An overall higher quality of life (improved public health, better transit systems, more green space, less pollution, more walkable communities). A national reputation and brand that attracts the best talent to our region. Boston Is Highly Vulnerable To The Harmful Effects Of Climate Change As a coastal city with many densely populated, low-lying residential and commercial areas and an under-maintained and aging transportation infrastructure, sea level rise is a very real threat to the Boston region. A recent OECD report projects that Boston will experience the eighth highest level globally of expected annual economic losses due to coastal flooding. 2

3 Over the last year, the City has missed three 100-year flood events by a matter of a few hours each time, due to the storms hitting at low tide instead of high tide. If any one of these storms had hit at high tide, up to 10% of the City would have flooded and the devastating images we saw from Hurricane Sandy in New York and New Jersey could have been East and South Boston. Future projections of sea level rise are in the range of five feet by the end of the century. The human and economic toll resulting from climate change is simply unacceptable if Boston is to remain a thriving economic, residential and cultural center in the Northeast. Over the next several decades, the City has the opportunity to thoughtfully design and develop so as to be the most climate and sea level rise resilient city in the country. The State is a Critical Partner in Boston s Climate Leadership The context for Boston s national leadership on climate action is set by the exemplary policies established at the State level. The three most important of these are: The Green Communities Act (GCA), which requires the capture of all cost-effective energy efficiency that is cheaper than new power sources, and establishes the funding and structure for the three year utility energy efficiency incentive plans. (The plan commits $2.2 billion in funding for energy efficiency.) The Global Warming Solutions Act (GWSA), which sets phased reduction levels for the state s greenhouse gas emissions 25% by 2020 and 80% by 2050 and mandates the development of a state climate adaptation strategy. The Regional Greenhouse Gas Initiative (RGGI), a nine-state carbon cap-and-trade program to limit and reduce pollution from large power plants. All three of these state-level strategies are very important to the progress Boston has made: The utility energy efficiency plans established under the Green Communities Act create an important incentive for building owners to invest in energy efficiency. It has created the framework for Boston s collaboration with Northeast Utilities and National Grid through the Renew Boston partnership. The energy efficiency gains achieved through the utility plans have been an important source of GHG reductions in the city. The Green Communities Act also has also provided important support to the State s Renewable Portfolio Standard (RPS) and a shift to more renewables in the power supply system. The Global Warming Solutions Act establishes enforceable caps on emissions at the state level and supports state strategies in the areas of buildings and energy efficiency, clean energy and renewables, and reductions in transportation emissions. The GWSA also sets the framework for the State s climate adaptation plan. Because of the diverse control over key infrastructure assets (e.g. transportation systems; power generation and distribution; communication; waste and water), it is impossible for the City of Boston to put in place effective long-term climate preparedness and resilience strategies without leadership from the State. RGGI creates a cleaner energy supply to Boston residents and businesses and contributes important funding for energy efficiency strategies. 3

4 Recommended Priorities for the Next Governor The Green Ribbon Commission recommends that the new Governor reinforce and grow the Commonwealth s climate leadership in the following ways: 1) Speak Out on Climate Issues and Highlight the Need for Transformative Change. Our society has a moral imperative to keep global average temperatures within a few degrees Celsius of the temperatures at which human civilizations have developed and flourished. And we have a responsibility to prepare our citizens to adapt to the changes that have already been put in motion. The actions we take over the coming decades will determine the conditions on Earth for thousands of years to come. The greatest enemy to success is silence and denial. Political leaders must have the courage to speak out and engage the enthusiasm and creativity of all citizens in finding win/win solutions. Outspoken leadership from states is critical to motivating ever-increasing climate action at local, regional, national, and international levels, both within governments and the community at large. Responding to the challenges of dramatic reductions in our emissions and preparing ourselves for increasingly serious climate disruptions will require transformational change in how we power our buildings, heat and cool our homes, transport our goods and citizens, and design our urban and rural environments. The Governor needs to be an inspiring leader who helps citizens and stakeholders rise to this challenge. 2) Collaborate with the Green Ribbon Commission. Continue the strong partnership between the State and the GRC by actively engaging with the Green Ribbon Commission including continuing representation by the Secretary of the Executive Office of Energy and Environment Affairs as a member of the GRC. 3) Endorse the State s Aggressive Emissions Targets. It will be important for the new Governor to publicly endorse the emissions reduction targets in the state Clean Energy and Climate Plan and support the continued leadership of the Executive Office of Energy and Environment Affairs in plan development and implementation. The new Governor needs to signal their willingness to implement policy options that make GHG reductions mandatory if that is what is needed to hit our targets. 4) Accelerate Energy Efficiency Efforts. The new Governor will have the opportunity to shape the next three-year utility plan ( ). We strongly support maintaining adequate funding levels and aggressive energy efficiency targets in these three-year plans. 5) Promote Renewable Energy. We need to maintain and extend the Commonwealth s existing suite of renewable energy policies, including Renewable Portfolio Standards (RPS), net metering, long-term contracting and aggressive targets for deployment of wind and solar. To meet our 2050 targets, the State needs to embrace a vision of a future power system that is fundamentally carbon-free. This will require rapid transition to renewable and distributed power sources. 6) Strengthen the Regional Greenhouse Gas Initiative. In Massachusetts, 71,000 new jobs have been created in the clean energy sector since the cap-and-trade system covering state utilities was put in place, in part from investments of the RGGI revenue. The new Governor can play a leadership role in bringing other states into the RGGI model, and as the EPA moves forward with its federal regulations to reduce carbon pollution from power plants, we need to advocate for the RGGI model as a compliance option. 7) Create a Vision for a Modernized, Integrated Transportation Network. Achieving our emissions reductions goals in the transportation sector will require a fundamental rethinking of our strategies for regional mobility. We need a strong state vision and support 4

5 infrastructure for increasing the use of clean transportation walking, biking, public transit and vehicles powered by clean fuel. 8) Modernize Our Electricity Grid. A carbon-free energy future will impose performance requirements on our power grid that the current system is not equipped to handle. Renewables and electric vehicles will shift consumption from combustion fuels to electricity, significantly increasing power demands. At the same time, more and more of our power will come from decentralized sources. We need to develop a modern, 21 st century electricity system capable of integrating renewables and intermittent supply; storing energy when needed for future use; and enabling two-way communication through smart grid technology between producers and users. This will in turn require a reinvention of the utility business model. 9) Begin Planning For Carbon Neutrality. The State s long-term goal of an 80% reduction in emissions by 2050 is the functional equivalent of becoming a carbon neutral state. This will require fundamental transformation of many of our systems our building stock, energy generation and distribution, transportation, land use planning, and water and waste. We should begin developing this aggressive plan now so we have time to implement necessary changes. 10) Strengthen Climate Preparedness. The new Governor needs to seriously accelerate the integration of climate preparedness into all parts of State government, and engage in preparedness planning with municipal, regional, and federal partners. Developing a framework for implementing climate preparedness on the regional scale at which much of our infrastructure is organized cannot be done without proactive leadership from the State. This in turn will require the commitment of focused senior staff resources to support interactions with public and private partners. 11) Highlight the Implications of Climate Change for Public Health. Climate change is becoming a fundamental public health driver. Over the next half century, global warming is likely to have a larger impact on the quality of public health than any other single factor. Massachusetts is a national leader in the health care sector and our health care systems have been national leaders in responding to the climate challenge. Massachusetts can be a national leader in showing how to proactively manage the public health impacts of climate change and highlighting the role of the sector in developing global climate solutions. 12) Facilitate Growth of the State s Clean Energy Economy. While global climate change brings risks, it also brings great opportunities. The transition to carbon-free power sources will create huge new clean energy markets as old, polluting sources of power are phased out. Because of its decades of clean energy leadership and innovation, Commonwealth companies and entrepreneurs are well positioned to be leaders in these markets. We need to support the development of our clean energy sector through research, innovation and entrepreneurship development. 5

6 Signatories Green Ribbon Commission Briefing Memo for the Next Governor of Massachusetts This briefing memo is submitted on behalf of the Boston Green Ribbon Commission by the Commission s Executive Committee. Amos Hostetter, Trustee, the Barr Foundation (GRC Co-Chair) Michael Mooney, Chairman, Nutter, McClennen & Fish (GRC Vice Chair) Mindy Lubber, President, Ceres (GRC Vice Chair) Alan Leventhal, Chairman and CEO, Beacon Capital Partners Bryan Koop, Senior Vice President, Boston Properties Israel Ruiz, Executive Vice President and Treasurer, MIT Brian Swett, Chief, Office of Energy and Environment Services, City of Boston For more information, please visit: Green Ribbon Commission: Greenovate Boston: City of Boston Environmental and Energy Services: 6

7 Boston Green Ribbon Commission Members 1. Joseph Aoun, President, Northeastern University 2. Robert Brown, President, Boston University 3. David Colella, Chairman, Greater Boston Conventions & Visitors Bureau 4. Penni Conner, Senior Vice President, Customer Group, Northeast Utilities 5. John Donahue, CEO, Arbella Mutual Insurance Company 6. Anne Finucane, Global Strategy and Marketing Officer, Bank of America 7. John Fish, President, Suffolk Construction 8. David Fubini, Director/Boston, McKinsey and Co. 9. Paul Gaynor, CEO, First Wind 10. Gary Gottlieb, MD, President and CEO, Partners HealthCare 11. Jeremy Grantham, Founder and Chief Investment Strategist, GMO, LLC 12. Joe Grimaldi, President & CEO, Mullen Advertising 13. Rev. Ray Hammond, Pastor, Bethel African Methodist Episcopal Church 14. Amos Hostetter, Trustee, Barr Foundation (Co- Chair) 15. Deborah Jackson, President, Cambridge College 16. Michael Keating, Partner, Foley Hoag; Chair, The Boston Foundation 17. Andrew Kendall, Executive Director, Henry P. Kendall Foundation 18. Scott Kinter, Vice President, Avalon Bay Communities, Inc. 19. Wendell Knox, director and Former CEO, Abt Associates Inc. 20. Bryan Koop, Sr. Vice President, Boston Properties 21. Ted Landsmark, President, Boston Architectural College 22. Katherine Lapp, Executive Vice President, Harvard University 23. Alan Leventhal, Chairman & CEO, Beacon Capital Partners 24. Vivien Li, Executive Director, the Boston Harbor Association 25. Mindy Lubber, President, Ceres 26. Michael Mooney, Chairman, Nutter McClennen & Fish 27. J. Keith Motley, Chancellor, University of Massachusetts Boston 28. Peter Nicholas, Founder & Chairman, Boston Scientific 29. Nam Pham, Executive Director, VietAID 30. Marcy Reed, Massachusetts President, National Grid 31. Bud Ris, CEO, New England Aquarium (retired) 32. Israel Ruiz, Executive Vice President and Treasurer, MIT 33. Maeve Bartlett, Secretary, MA Exec. Office of Energy & Environmental Affairs 34. Brian Swett, Chief, Office of Energy and Environment Services, City of Boston 35. Kate Walsh, President and CEO, Boston Medical Center 36. Marty Walsh, Mayor, City of Boston (Co- Chair) 7