Study Finds Climate Goals Can Be Achieved Profitably

Many of us have heard of the new scientific report showing how climate change has contributed to a severe spike in severe and dangerous weather during the last decade. Less publicized (in part due to the silly rhetoric one often hears about climate change) is the increasingly compelling evidence that green energy and energy efficiency can now also be pursued for purely economic and national security reasons. The newest study supporting this view is titled, The 3% Solution: Driving Profits Through Carbon Reduction and was conducted by McKinsey and Company, World Wildlife Fund (WWF), and the Carbon Disclosure Project (CDP). Released in June, the report analyzes a large amount of data to demonstrate how U.S. businesses can save up to $780 billion over the next 10 years by reducing greenhouse gas (GHG) emissions by an average of three percent annually. Businesses can save this money, and reduce their carbon emissions, if they invest 3-4% of their annual capital expenditures on carbon reduction projects proven to be profitable, including installing renewable energy systems and making energy efficiency improvements. Indeed, green energy and energy efficiency projects carry higher rates of return than most other corporate investment options. Based on data submitted by a large number of US corporations, the report found that nearly 80 percent of the companies that reported their climate and environmental goals to the CDP earned higher rates of investment returns on carbon reduction investments than on their overall corporate capital investments.  In addition to saving money, these efforts could collectively reduce U.S corporate carbon dioxide (CO2) emissions by about 25 percent compared to 1990 levels – which would help the US avoid some of the hundreds of billions of dollars in costs that climate change will produce.  The key findings from the report, as well as charts, videos and a link to the full report, is available via WWF:  http://worldwildlife.org/projects/the-3-solution