Climate Change Concerns and the Likely Impacts on Industrial Energy R&D

Abstract

Last December, US negotiators agreed to commit the U.S. to a binding target of reducing its greenhouse gas (GHG) emissions to 30% below business-as-usual (BAU) projections by 1990. Since U.S. Industry is responsible for more than 40% of GHG emissions, efforts to achieve this goal must involve industry. The most cost effective, politically acceptable and sustainable way to reduce GHGs is to invest in low or zero carbon generation technology and energy efficiency. Therefore, industry needs to begin to incorporate GHG emission reduction considerations into its R&D decision making processes. Recently, several industries have worked with government on developing technology roadmaps. This paper describes a structured systematic methodology for companies to develop technology road maps that include GHG emissions reduction goals. It includes a framework to include assessments of various energy generation and energy efficiency technology areas in determining optimum R&D priorities for various industries. It also provides for cross-industry partnerships involving the suppliers and service industries. It also allows consideration of related policy issues such as Clean Air Act implementation, electric utility restructuring and federal tax reform.