| THE INDIANAPOLIS STAR SUNDAY, MAY 9, 1999 LETTERS / OTHER VIEWS LETTER SPOTLIGHT Protecting climate at a profit BY GRANT SMITH AND ANDY KNOTT On April 22, The Star published a letter by Vince
Griffin, director of environment and energy policy for the Indiana Chamber of Commerce. The sky-is-falling approach of his letter is diametrically opposed to the astounding economic opportunities available to us through extensive deployment of energy efficiency and renewable technologies. Just as Indiana manufacturers are increasingly turning the supposed burdens of environmental regulations into profits by implementing clean manufacturing projects designed to eliminate waste generation up front, the Kyoto Protocol can be viewed as a catalyst for economic growth. As well-known energy efficiency expert Amory Lovins recently wrote, "The Earth's climate can be protected not at a cost but at a profit." Since 1973, an estimated 1.4 percent annual increase in energy efficiency has translated into $150 to $200 billion in annual savings nationwide and has cut carbon emissions such as carbon dioxide gas by 25 percent. Recently, 2,500 economists stated that energy efficiency measures could reduce these emissions by as much as 20 percent below 1990 levels while simultaneously boosting productivity and economic growth. Others believe that over one-half of the global warming problem could be addressed by off-the-shelf energy efficiency technologies. Energy efficiency and renewable energy technologies are becoming popular as engines of economic development. The Electric Power Research Institute touts the efficiencies inherent in fuel cells and high-efficiency electric motors. The Tellus Institute claims that investments in renewables and energy efficiency would create more jobs. Companies such as Dow Chemical and Dupont are saving millions through energy efficiency measures. A Danish company recently built a wind turbine assembly plant in Illinois, and BP Amoco announced in April that it will install solar panels initially at 200 of its gas stations. All these measures can help substantially improve environmental quality while averting the global warming crisis and spurring economic growth worldwide. The Kyoto Protocol is not a burden but an economic opportunity with environmental benefits on a global scale. States that take advantage of using and exporting these technologies would be in a highly competitive position. We realize that businesses have done some good things for the environment in this state. For instance, the Indiana Chamber was instrumental in forging a compromise that made possible the creation of the Indiana Clean Manufacturing Technology and Safe Materials Institute at Purdue University. However, there is no need to exaggerate the impacts of environmental regulations. Such was the case with the sulfur dioxide regulations under the Clean Air Act. Utility companies claimed a few years ago that compliance costs would be $1,500 per ton. The actual costs are between $113 and $322 per ton, depending on the compliance method. The federal government estimates that roughly $70 billion annually will be saved in health-care and productivity costs due to cleaner air. We can meet the challenge of global warming and many other environmental and public health concerns by realigning our energy policy with the promise of energy technologies that will make Indiana businesses both more efficient and more competitive. Smith is environmental policy coordinator at Citizens Action Coalition, and Knott is air and energy policy director at the Hoosier Environmental Council, both in Indianapolis.
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While the Citizens Action Coalition and Hoosier
Environmental Council agree with his comments on the need for industry investment in
environmental compliance matters, we disagree with his assertions about the $250 billion
annually it will cost industry to comply with ameliorating global warming through
implementation of the Kyoto Protocol.