The event brought together business leaders, climate experts, and policymakers from the United States, EU, China, and India to discuss what action is needed from U.S. policymakers and from global businesses to facilitate a new global treaty on climate change. Speakers analyzed how businesses have fared under current EU climate legislation and how they can collaborate on technology and trade. The event also served as a roll-out for a new GMF Climate & Energy Paper, "The Effects of EU Climate Legislation on Business Competitiveness: A Survey and Analysis," a qualitative survey in which nine of Europe's biggest emitters describe their experiences under the EU Emissions Trading System. 

The event was co-chaired by C3 founder and Vattenfall CEO Lars G. Josefsson, and Duke Energy CEO James Rogers. Welcoming remarks were provided by Karen Donfried, executive vice president of GMF and the discussion was moderated by Cathleen Kelly, director of GMF's Climate and Energy Program. The event featured high-level representatives of global business, the Obama administration, the European Commission, and others. Speakers included: David Sandalow, assistant secretary for Policy and International Affairs at the Department of Energy; Artur Runge-Metzger, lead climate negotiator for the European Commission; C.S. Kiang, chairman of the Peking University Environment Fund; Ambassador Arun Kumar Singh, deputy chief of Mission at the Embassy of India; Michael Allegretti, head of Government Relations for North America at The Climate Group and co-author of the new GMF paper; José Luis del Valle, chief strategy officer of Iberdrola, a Spain-based utility company that is the world's largest producer of wind energy; David Lustig, vice president of Global External Affairs at Unilever, a global manufacturer; John Hattenberger, president and managing director at Gazprom M&T USA; and Alison Taylor, vice president for Sustainability at Siemens.

Summary of Presentations

Keynote speaker David Sandalow, assistant secretary of Energy for Policy and International Affairs, stressed the Obama administration's commitment to strong and comprehensive climate and energy legislation including a cap-and-trade system for carbon emissions. He emphasized the continued importance of climate policy for the President, even in the shadow of this fall's health care debate, and asserted that he has "never seen more progress and leadership [on climate issues] than in the last year." He also drew attention to provisions of the American Recovery and Reinvestment Act that provided more than $80 billion for clean energy.

Following Sandalow's remarks, event co-chair and Duke Energy CEO James Rogers framed the event with a broader perspective, agreeing with Sandalow on the importance of climate and energy legislation and also highlighting the role of business in pushing the policy agenda forward. Rogers argued that, in order to stay competitive in the future, business must play an essential role in combating climate change, and many have already changed their business plans to get out ahead of expected comprehensive climate legislation.

Artur Runge-Metzger, lead climate negotiator for the European Commission, commended Rogers's vision, but warned that such initiatives will "fall flat" unless regulation is passed to provide a stable, transparent framework for adapted business models.  His argument that climate legislation helps business by guaranteeing the viability of investments in new technology and greater efficiency was echoed later by speakers representing global corporations.  

C.S. Kiang, chairman of the Peking University Environment Fund, provided China's perspective on climate regulations. He asserted that, on a per capita basis, China's emissions are far lower than Europe and the United States. While an overall cap on emissions could constrain economic growth, improvements in energy efficiency aimed at lowering per capita energy consumption could in fact be a major engine of growth, perhaps doubling China's GDP. He emphasized China's interest in working bilaterally with the United States on concrete projects such as the development of commercial applications of solar or prototypes of low-carbon cities, rather than passing binding climate agreements.

Ambassador Arun Kumar Singh, deputy chief of Mission at the Embassy of India in Washington, assured that India is committed to managing its growth (at rates of 8 to 10 percent) in a way that preserves environmental balance, citing initiatives to increase the forest cover and invest in solar and wind energy. In terms of international cooperation, Singh explained that India would continue to match its per capita emissions with those of the developed world. Thus, the more successful developed countries are at reducing their per capita rates, the more concessions can be expected from India.

Michael Allegretti of The Climate Group (TCG) presented their recent paper, commissioned by GMF, on The Effects of EU Climate Legislation on Business Competitiveness: A Survey and Analysis. TCG interviewed nine companies who, together, represent 5 percent of emissions covered under the EU Emissions Trading System, and found that none of the nine had experienced quantifiable competitive impacts (no jobs lost, no factories closed, and no market share lost). While the impact on the bottom-line can be difficult to quantify, especially in the context of the recession, cap-and-trade has "moved the climate debate into the board room," and companies surveyed had made changes to strategic planning, improved monitoring, and "greened" their product mix.

The event closed with a panel on global business perspectives, including John Hattenberger of Gazprom, José Luis del Valle of Iberdrola, David Lustig of Unilever, and Alison Taylor of Siemens. Hattenberger, del Valle and Taylor focused on how their companies have adapted to address climate change in anticipation of upcoming legislation or treaties. Hattenberger and del Valle agreed that emissions trading will provide needed clarity to businesses trying to strategically invest in new technologies and greater efficiency, and del Valle emphasized the effectiveness of auctioning as a means to distribute allowances. Taylor highlighted Siemens' role in providing the technology needed to make energy efficiency a reality around the globe. Lustig focused more on the role of Unilever in changing individual consumer behaviors through a greener product mix, (for example, shifting production toward concentrated laundry detergents.)

To view Clean Skies video coverage of the event by please click here.

Mark Kenber, policy director of The Climate Group and co-author of the new GMF Climate & Energy Paper, discussed the EU's climate legislation and its relationship to business competitiveness with GMF's Cathleen Kelly. To listen to their conversation please click below.