World Resources Institute

1

• World Resources Institute

2
About the collaboration

• Agreed supportive policy is needed to reduce
  risks
• Analyzed long term energy scenarios
• Examined BP, GM, Monsanto, and WRI roles
• Identified opportunities and barriers
• Developed recommendations
• Committed to pursue seven-point action agenda

3
Key messages

• Precautionary action is justified now
• Business can contribute technology, policy
  development, and reductions
• Market-oriented policies that implement national
  commitments can address the long-term need to
  stabilize GHG concentrations

4
Some energy pathways can reduce risks, but this
will be a challenge
5
Recommendations for business

• Measure, track, and report
• Reduce and sequester
• Develop new products and businesses
• Include global climate in new investments

• Educate stakeholders
• Help formulate and implement policy

6
Recommendations for government

• Consider climate in policy decisions
• Eliminate fossil fuel subsidies and implement
  market-based mechanisms

• Increase basic research
• Expand cooperative research programs
• Engage stakeholders

• Establish mechanisms forglobal cooperation

7
SCSB Action Agenda

• Measurement and reporting
• Early reductions
• Strategic ventures and alliances
• Purchasing decisions and leverage
• New global investment criteria
• Education
• Dialogue

8
General Motors

• The path to greatness is along with others.
• - a Spanish priest, 1600s

• GMs advanced technology vehicles include the
  currently available EV1 and S-10 electric
  pickup and concept vehicles utilizing hybrid
  and fuel cell technologies.

• Continued RD and market-based policy incentives
  will spur further innovation, price reductions,
  and market diffusion

9
GMs next steps

• Development of advanced-technology vehicles.
• Pursue opportunities at our facilities and with
  our suppliers on resource conservation, energy
  efficiency and pollution prevention.
• Expand our reporting and work with our partners
  on a common reporting protocol.
• Integrate economic, environmental, and social
  objectives into our daily business decisions and
  future planning activities.
• Learn from dialogue with others.

10
British Petroleum
Kyoto and the debate around it have demonstrated
that the issue is being taken seriously. As the
psychologists would say, weve moved beyond
denial - John Browne ( London, 1998 )

• SCSB project builds on BPs existing commitments.
• Opportunity to work with others
• Starting with building a consensus on policy and
  action
• SCSB is a new multi-industry platform for climate
  action

Companies can respond positively and creatively
to difficult issues - John Browne ( London,
1998)
11
BP action on the recommendations

• BP emissions protocol available
• GHG emissions reductions
• 10 below 1990 levels by 2010
• Pilot emissions trading program
• Aim to grow BP solar ten-fold by 2010
• Climate change technology
• Exploring offsets through participation Noel
  Kempff CCAP.

12
Next steps the Action Agenda

• BP offers our experience measurement is the
  first step.
• Emissions trading
• Early reductions BP aims to meet or exceed the
  2010 target support early action legislation
• Partnerships and alliances
• Look forward to learning from others

13
Monsanto

• Broad portfolio of technologies will be needed
• Agricultural sequestration is available,
  effective and easily practiced
• Agricultural sequestration can benefit developed
  and developing countries

14
Benefits of Conservation Tillage

• Carbon sequestration -- 1/2 ton/acre/yr avg. of
  CO2
• Topsoil preservation -- 25B tons/yr lost globally
• Improved water quality
• Reduced labor, time, fuel and equipment wear
• Improved farm productivity
• Increased wildlife habitat

15
Conservation Tillage is a global trend
SEA 1996 2.7 2002 40
M acres under CT in 1996 and projected by 2002
16
Monsanto Future Actions

• Establish a system to trade agricultural carbon
  credits
• Track and report CO2 from operations and look for
  reduction opportunities
• Focus research on agricultural sequestration
• Educate key stakeholders on value of agricultural
  sinks
• Continue to promote conservation tillage
  practices for their many environmental benefits

17
Finally...

• Energy and technology pathways are available to
  protect the climate
• Business can provide solutions and create new
  markets
• Policy can help remove barriers and create
  incentives
• The challenge requires action now