The Sloan Foundation Industry Centers network, of which CPBIS is a member, recently convened a workshop to consider ways that the network can help U.S. industries start to study how they will be impacted by climate change and possible greenhouse gas (GHG) reduction regulations and how they can most efficiently respond. The workshop, “U.S. Industry and Climate Change: Impacts, Policies, and Responses,” was held April 4-5 in Berkeley California. CPBIS was represented by Jacqueline McNutt, executive director, and George Weyerhaeuser, chairman of the CPBIS Board of Executives, both of whom actively participated in the program. Other industries participating in the workshop included aluminum, electricity, food and motor vehicles. The following is based on a preliminary summary prepared by Dr. McNutt and workshop leaders from other Sloan Industry Centers. The full summary will be made available in the coming weeks.

Several key observations emerged in the course of the group’s deliberations. These are summarized below.
Climate change has become an urgent issue that significantly threatens our environment and our economy, and dramatic action is needed to address it. Attendees expressed a surprisingly high level of concern, both in regard to the grave uncertainties that exist in climate science and the significant gap that exists between GHG emission reductions that will probably be required to “solve” the problem and current levels of public perception, research spending, energy sector investment, perceived business impact, and proposed policy.

Much research is needed to help U.S. industry understand how to remain competitive and continue to grow in the face of climate change and the associated regulatory responses. The Sloan Industry Studies Program (encompassing both the centers and their affiliates) has the potential to contribute significantly to that effort, especially through interdisciplinary, collaborative research activities. Specific research themes emerged from the discussions. One was the role of innovation and whether price signals alone can stimulate the needed levels of innovation. Another was the potential for climate policies to put U.S. industries at a disadvantage, especially relative to industries in developing countries. A third related to the need for better methods of identifying the carbon-equivalent footprint of products and services through their entire supply chains, to enable better management of both the footprints and the supply chains.

An outgrowth of the discussions was a commitment to embark on a collaborative funding and organizational effort that includes Sloan Industry Studies Program centers, their affiliates and other organizations globally. This effort will recognize the need to establish effective industry-academia connections as a prerequisite to addressing the wide array of complex topics inherent in climate change issues. Climate change affects many industries directly and, through energy prices and supply chains, all industries indirectly. The knowledge and understanding of industries that reside within the Sloan centers will be a powerful instrument in addressing the relevant issues, but the problems are so complex that outside collaborations will be important and substantial support will be needed to mobilize the capabilities of the centers and their partnering organizations.

Both land use and energy issues must be considered. Atmospheric greenhouse gas levels are inextricably correlated with both industrial energy consumption and energy generation from biomass. The latter has obvious land use implications. Interdisciplinary, cross-industry effort will be required to ensure the proper linkages.

Adaptation is as important as mitigation. This reality will require serious examination of a wide array of possible alternatives, further complicating an already complex picture.

There is wide divergence in opinion about the technical potential and social acceptability of carbon sequestration. Many energy experts place carbon sequestration in the category of “key technologies” while some environmentalists consider it undesirable and the public is generally not cognizant of the issue. Among experts, one school of thought holds that carbon sequestration will enable continued large-scale use of fossil fuels, creating political impetus for it. On the other hand, many renewable energy sources do not depend on carbon sequestration and are often seen as less problematic by the public. Dealing with this will be a key issue.