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I N E STIT U T Acknowledgments The authors acknowledge Michael Northrop and the Rockefeller Brothers Fund, whose original idea, generous support, and knowledge of the field made this handbook possible.
The authors also thank the following individuals and organizations for offering their insights and perspectives on this work:
Marshall Abramczyk, Rocky Mountain Institute Evan Juska, Under2 Coalition and The Climate Group Taryn Akiyama, Under2 Coalition Adam Klauber, Rocky Mountain Institute Tim Ash Vie, Under2 Coalition and The Climate Group Thomas Koch Blank, Rocky Mountain Institute Juliette Baralon, Under2 Coalition and The Climate Group Dave Mullaney, Rocky Mountain Institute Eduardo Batllori Sampedro, Government of Yucatan Paolo Natali, Rocky Mountain Institute Damià Calvet, Government of Catalonia Chris Nelder, Rocky Mountain Institute Iain Campbell, Rocky Mountain Institute Álvaro Pacheco Álvarez , Government of Caquetá Raffaele Cattaneo, Government of Lombardy Prof. Dr. Andreas Pinkwart, Government of North Rhine-Westphalia Ji Chen, Rocky Mountain Institute Luke Pritchard, Governor’s Climate and Forests Task Force Jon Creyts, Rocky Mountain Institute Shane Rattenbury, Government of Australian Capital Territory Dan Cross-Call, Rocky Mountain Institute Greg Rucks, Rocky Mountain Institute Christiana Figueres, Under2 Coalition Shilpi Samantray, Under2 Coalition and The Climate Group Emma Fisher, Under2 Coalition and The Climate Group Craig Schiller, Rocky Mountain Institute André Fortin, Government of Quebec Subaskar Sitsabeshan, Under2 Coalition and The Climate Group Dino De Francesco, R20 Regions of Climate Action Isaac Toussie, Rocky Mountain Institute Miguel Gomez-Escolar, R20 Regions of Climate Action Jeff Waller, Rocky Mountain Institute Bill Grant, Government of Minnesota Richard Ward, Rocky Mountain Institute Lesley Griffiths, Government of Wales Denise Welch, R20 Regions of Climate Action Ned Harvey, Rocky Mountain Institute Carly York, State of California Beth Hotchkiss, State of California Humza Yousaf, Government of Scotland front matter . rmi.org/carbonfreeregions
[email protected] [email protected] Editorial Director: Cindie Baker Director: Cindie Baker Editorial Editor: David Labrador Purshouse Director: Romy Creative Designer:Graphic Jongbloed Marijke unless otherwise noted. of iStock courtesy Images Contacts Corvidae,Jacob Jungclaus, Matt Citation Suggested and Peter Whitney, James Mandel, Angela Jungclaus, Matt Corvidae, Laurie Guevara-Stone, Jacob, and Regional Provinces, States, Handbook: An Action Guide for Regions The Carbon-Free Bronski. 2018. September Institute, Mountain . Rocky Governments and Design Editorial Authors Jungclaus, Matt Corvidae, Jacob Agency), Guevara-Stone, Laurie Point (Inflection Bronski Peter Whitney and Angela James Mandel, unless otherwise noted. Institute Mountain Rocky All authors from alphabetically. listed *Authors
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About the Under2 Coalition and The Climate Group and The Climate About the Under2 Coalition committed governments and regional of ambitious state a group is driven by The Under2 Coalition than 200 more is made up of under 2°C. The coalition rises to temperature global keeping to The economy. of the global 40% over 1.3 billion people and nearly represent that governments accelerate to and works with governments the Under2 Coalition to is the Secretariat Group Climate planning, scaling pathway deep decarbonization work streams: three through action climate and reporting. transparency policy solutions, and mainstreaming innovative This handbook was produced in partnership with the Under2 Coalition and The Climate Group. and The Climate with the Under2 Coalition in partnership produced This handbook was Rocky Mountain Institute (RMI)—an independent nonprofit founded in 1982—transforms global global in 1982—transforms founded independent nonprofit (RMI)—an Institute Mountain Rocky businesses, It engages future. low-carbon and secure prosperous, a clean, energy create use to solutions of market-based adoption the accelerate to and entrepreneurs institutions, communities, in Basalt and renewables. to efficiency RMI has offices and fossil fuels from shift cost-effectively that D.C.; and Beijing. City; Washington, New York Colorado; Boulder, About Rocky Mountain Institute Mountain About Rocky The Carbon-Free Regions Handbook Regions The Carbon-Free to Welcome Governments Regional and Provinces, States, for Guide An Action will help that actions no-regrets for recommendations 30 around is organized This handbook divided and are continuously numbered are The recommendations free. carbon become regions among seven sections. table of contents pages pages pages 11–18 19–32 33–44
section section section
The Big Picture Buildings Mobility Electricity & Next Steps
Letters from Leaders...... 2 Overview...... 11 Overview...... 19 Overview...... 33 About This Handbook...... 4 1 Net-Zero Codes...... 12 4 Electric Vehicle Charging...... 20 10 Renewable Portfolio Standard...... 34 Understanding Regional Governments...... 5 2 Existing Building Upgrades...... 14 5 Fleet Electrification...... 22 11 Coal Plant Replacement...... 36 Using This Handbook...... 6 3 Robust Regional Efficiency...... 16 6 Clean Vehicle Manufacturing ...... 24 12 Responsive Rate Design ...... 38 Recommendation Format...... 7 7 Clean Freight Delivery...... 26 13 Responsive Grid Planning ...... 40 Handbook Recommendations at a Glance...... 8 8 Public Transit...... 28 14 Community Solar...... 42 General Resources...... 84 9 Mobility Alternatives...... 30 Version and Evolution...... 84 The Path Forward...... 85 Conclusion...... 86 front matter pages pages pages pages 45–56 57–66 67–74 75–82 section section section section
Industry Land Use Waste Finance
Overview...... 45 Overview...... 57 Overview...... 67 Overview...... 75 15 Methane Containment ...... 46 20 Sustainable Land Management...... 58 24 Organic Waste Diversion...... 68 27 Capital Availability ...... 76 16 Clean Industrial Processes ...... 48 21 Open Space Conservation ...... 60 25 Open Burn Ban ...... 70 28 First-Cost Solutions...... 78 17 Shared Industrial Flows ...... 50 22 Agricultural Methane Capture...... 62 26 Waste Energy Capture ...... 72 29 Market Incentives...... 80 18 Clean Ports and Airports...... 52 23 Regenerative Agriculture...... 64 30 Reduced Procurement Costs...... 82 19 Clean Industrial Vehicles...... 54 the big picture
Letters from Leaders
Welcome to The Carbon-Free Regions Handbook: An Action Guide for States, Provinces, Every one of our communities is seeing and experiencing the impacts of climate and Regional Governments. We live in unprecedented times. The need for regional-scale change. But at this most crucial time for action, the US government has abdicated its governments—states, provinces, counties, multistate coalitions, etc.—to act ambitiously commitment to doing its part to combat this existential threat. toward similar goals has never been this universal. We have also never before seen the momentum that is now arising from these same governments. The time is now, and we But national governments are not the only ones with the responsibility—and power— offer this book to accelerate those efforts. to step up in this fight. When the White House announced the intention to pull the US out of the Paris Agreement, I stood up as governor of the State of Washington The work we pursue today must be focused on impact. Commitments? Yes. Planning? alongside the governors of California and New York to create the bipartisan US Yes. But commitments and plans won’t solve the problem. We must take action now. Climate Alliance. We’re now 17 states strong, and collectively, our states represent “Action now” has to be our mantra. Actions vault us from a hope for tomorrow to making the third-largest economy in the world. We will do what the nation should do: reduce that vision reality. Our time and resources are always limited, so let’s put them to use greenhouse gas emissions consistent with the goals of the Paris Agreement and grow where they will drive the greatest changes. As my colleagues at RMI say, if you have to a clean energy economy consistent with our spirit of innovation. I’m here to tell you choose between making plans or making progress, then make progress. that our citizens, our businesses, our cities, and our states and our regions can and will uphold America‘s commitment to meaningful climate action. This handbook’s recommendations support that progress. They are proven. They are relevant to most state and provincial governments. They are actionable. This handbook We don’t have to do it alone, but we have to do it. can remove a lot of uncertainty about where to start. You know your local context. Your knowledge, combined with the recommendations provided here, will lead to impact. We wield great power in the global effort to keep the world below a 2- or 1.5-degree temperature rise. We created the Under2 Coalition to bring ambitious governments Although the climate change crisis makes this work urgent, more than fear drives us. together to do this. The coalition represents more than 1.3 billion people and $30 These recommendations provide a wealth of other benefits. Not only can we prevent trillion in GDP—equivalent to 17% of the global population and nearly 40% of the the economic, political, and social upheaval of dramatic climate shifts, we can also global economy. create economic prosperity and improve security and resilience, all while making healthier and safer places for our families, friends, and fellow citizens to live. The Carbon-Free Regions Handbook is all about the actions we can each take to do our part. We all have a stake in acting on climate, and we all have an enormous When we released The Carbon-Free City Handbook at COP23 in Bonn, our aim was to opportunity. My state is proof that a strong economy and a strong commitment to create a very accessible guide that would reach the largest possible global audience. protecting our planet go hand in hand. Washington state consistently ranks as one The goal is clear: we must make it easier for local governments to move great ambitions of the top-performing economies in the US. Join us in taking action to stop climate forward. RMI is proud to work with local governments that are change and create thriving regions at the same time. ready to be part of the global energy transition. Thank you for taking this step forward. Thank you for leading this transition. This fight is bigger than any of us; we’re going to win We are relying on you, and we are also working with you, to because of all of us. create a future we can all be proud of. —Jay Inslee, Governor, State of Washington, and North —Jules Kortenhorst, Chief Executive Officer and Trustee, American Cochair of the Under2 Coalition Rocky Mountain Institute
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Toward Carbon-Free States, Provinces, and Regions: Relative Impact I have seen what happens when governments unite to make change. It doesn’t start Holding warming to 1.5°C is crucial for our survival. Passing that threshold with everyone stepping forward at once, even though it may appear that way at times. Individual governments have to determine what they can do and decide to means more weather extremes, major crop losses, and low-lying areas and act. Each official has to find his or her own path to leadership. even entire countries being submerged under the ocean. To keep within the goal of a 1.5°C temperature rise, we must take strong and ambitious on-the- Instead of thinking about early movers, or those that follow, let’s use the mindset ground action. Subnational governments are crucial to that effort. that we are all movers. Let us ask ourselves: what can I do to deliver meaningful change? The grand movement happens because each government finds its own way Countries around the world have set ambitious climate goals, yet national to step forward. governments don’t have full control and are often further removed from ground-level action. Thus, there is critical need for action from state, Government leaders around the world are continuing to step up on climate. Big provincial, and regional governments. Subnational governments are movement is happening. We see it in the Niger and Delta States of Nigeria investing responsible for delivery of basic services and policies that are essential to in utility-scale solar. We see it in the Brazilian state of Mato Grosso, which is leading development, and they have authority over approximately 9% of their the fight against deforestation and advancing sustainable forestry practices. These are just two examples of the multitude of actions accelerating momentum around countries’ entire GDP; for countries organized as federations, the share is the world to safeguard our climate. even higher, at 18% of GDP.
I have tremendous gratitude for the work that so many people across the globe have Approximately 77% of the world’s countries have subnational regional done to bring us to this point. I also have great gratitude for work that is happening governments, and countries that have regional governments are now as government officials and elected representatives are rolling up their sleeves responsible for over 90% of all greenhouse gas emissions, so action at this to do what must be done. But most of all, I have gratitude for all of the challenging scale can affect the majority of the world. and rewarding work ahead. Estimates for the number of cities in the world vary a lot, ranging from tens of We have to make these changes. And so we are making these changes, one bold, thousands to millions, depending on the definition of a city and method of leaping step at a time. estimation. A few sources indicate the existence of over 4,000 cities with more than 100,000 people, while obviously a great many smaller cities fill in the rest of the urban profile. In contrast, the number of regional governments is closer —Christiana Figueres, Global Ambassador for the to 2,000 and covers a multitude of cities at once. Therefore, significant action at Under2 Coalition and former Executive Secretary this scale becomes crucial for driving impact. of the United Nations Framework Convention on Climate Change
the carbon-free regions handbook | 3 the big picture
About This Handbook Complementing the City Handbook
The Carbon-Free Regions Handbook helps state, provincial, and regional governments The Carbon-Free City Handbook is helping cities around the world move from climate implement policies and actions that place their communities on an aggressive path commitments to climate action, and contains documentation from global cities that have toward sustainable, low-carbon economies. It is a companion to The Carbon-Free City taken action to help others accelerate. That handbook has reached a wide audience and Handbook, which Rocky Mountain Institute launched in November 2017 at COP23 in was shared with the members of the Global Covenant of Mayors for Climate and Energy, Bonn, Germany. ICLEI, and the Carbon-Neutral Cities Alliance, among others.
Local governments all over the world are already taking ambitious action to reduce Cities are essential for action because they are at the forefront of climate change risk and carbon while strengthening their ability to thrive in the 21st century. That work is opportunity. Nearly 600 cities are making climate commitments, with some on a path to the bounty that feeds this handbook. Other governments can learn from their peers, full climate neutrality. But cities can only do so much on their own—they need support to adapt these best practices, and progress faster. make change on issues outside of their control.
State, provincial, and regional government action is essential to unlock what cities can The difference in scope and story between The Carbon-Free Regions Handbook and The do. And their action can help create collective impact across community jurisdictions, Carbon-Free City Handbook are: bridging boundaries that might otherwise impede those efforts. Regional governments are also essential to reaching rural communities. Cities and rural communities rely on 1. The audience and action documents: This handbook contains examples that are one another for different needs, and uniting for climate action can substantially scale more relevant to governments of state and regional scale, whose territory spans their collective impact. Although regional action is important on its own, it can have a multiple municipalities. The action documents included address this scale of considerable effect in moving the municipalities and businesses within a region’s borders. governance and feature the work of regional government peers.
2. Recommendations specific to this scale: This book adds three new chapters on subjects not covered in the city handbook: land use, waste, and finance. Four chapters are on subjects that are covered in the city handbook: the electricity and industry chapters in this handbook contain new recommendations specific to this scale. The buildings and mobility chapters in this handbook build on the city handbook’s recommendations for greater impact with solutions that cross city boundaries.
In short, the focus in this handbook is on how to apply these top recommendations at a scale that crosses municipal boundaries and integrates both urban and rural considerations. Work at this scale is critical to enabling action at the municipal scale for the multiple cities within any regional government’s boundaries.
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Understanding Regional Governments Opportunities for Regional Collaboration
Regional governments vary widely in scale and jurisdictional poweri, making it Regional governments are in a unique position to coordinate regional efforts and enable challenging to recommend universal actions for different governments around the world. their constituents to achieve more than they would on their own. Because other local In this handbook, we focus on governments at the subnational and larger-than-city level. governments are included within their borders, regional governments are in a particularly Although this generally signifies states and provinces, it could also mean counties and strong position to drive efforts that cross geographic and political boundaries. multistate structures or collaborations. Spain, for example, has autonomous regions that include multiple states. We invite and encourage all local governments to make use of This collaborative approach provides a variety of benefits. It prevents the situation of these recommendations where they have the power to do so. municipalities simply relocating problems to nearby jurisdictions. Unified solutions create a less confusing landscape for businesses, which otherwise have to navigate changing For this handbook, “regions” is used as a general term for any subnational government requirements in each locale. Regional solutions also create economies of scale to lower whose jurisdiction covers multiple municipalities. costs. Examples of this kind of collaboration include:
Bulk procurement programs International Collaboration Regional mobility planning Regional energy offices for cities, such as the Agence Régionale d’Évaluation Regional collaborations can also cross national environnement et Climat en Nouvelle-Aquitaine and the Southeast Michigan Regional boundaries for strong impacts. For example, the Energy Office Pacific Coast Collaborative unites five regions that have committed to collaborative action around Collaboration at any scale can prove beneficial. For example, North Rhine-Westphalia, climate change. The Energy Transition Platform Germany, and Minnesota, US, have partnered for years to learn and drive each other brings together 11 regional governments from Europe, forward. This included an innovative project to pair five municipalities from each region. North America, and Australia. In 2017, the Jiangsu, Over half of the world’s countries have just three cities that makes up over one-quarter of Sichuan, and Guangdong provinces of China entered the entire country’s carbon emissions. Regions can pursue collaborations to support city agreements with California to support cleantech action to achieve large impact. efforts to address climate change.
i “States” usually implies more autonomous entities in a federation. “Provinces” usually indicates subnational governments from a unitary country. “Governates” implies administrative districts that are often equated with provinces, but may themselves contain multiple provinces. “Territories” usually indicates administrative districts without the full autonomy and authority of states or provinces. “Regions” can be a formal or informal designation that indicates subnational or cross-national governments.
the carbon-free regions handbook | 5 the big picture
Stakeholder Engagement Selection Criteria It is important to engage stakeholders around major initiatives in a robust fashion and on an ongoing basis. Gathering guidance from relevant parties helps to ensure that Although there are hundreds of possible actions a regional government can take governments have a full picture of the nuances and potential unintended consequences to reduce carbon emissions, four primary selection criteria helped narrow the of a policy, and can inform adjustments to improve those policies. Stakeholder recommendations in this guide down to 30. engagement can also create better conditions for a strong adoption and quicker execution of new programs. The selection criteria: Although this concept is not news to anyone working in politics or government, it is important to reiterate its importance in this context. Stakeholder engagement can be Impactful: leading-edge solutions that either make immediate, significant time-consuming, but it is critical to the ultimate adoption, acceptance, and success of impact or enable large, long-term carbon reductions impactful policies. Immediately Actionable: could be launched by state/regional staff within one year
Achievable: recently proven and economically viable, with compelling examples Using This Handbook of successful implementation
Due to the variety of forms of governments and how they function, any regional Broadly Relevant: applicable for most states, provinces, and regions globally government should look for actions it can take from each section or chapter, but may have to assess which recommendations it has the power to enact. Although not all recommendations will be relevant for every region, some actions should be adopted from each chapter for almost every jurisdiction. For example, one regional government in Criteria for Selecting Recommendations North America may review the recommendations in this handbook and decide to pursue net-zero energy codes for new buildings. A separate regional government in Asia may have to forego this recommendation because energy codes are set only at the national level in its country, but it may have the power to enable efficient buildings through setting energy-efficiency resource standards (EERSs). Immediately Achievable Actionable Some recommendations are based on examples that have been enacted at the city or national level. Such examples are included only where the powers exercised would typically be available for states, provinces, and regions to act upon as well.
Impactful Broadly Relevant
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Recommendation Format Benefits
The handbook’s recommendations are organized into seven core chapters. For each Carbon and Greenhouse Gas Emissions: all recommendations are included recommendation, you’ll find: for their large potential positive climate impact, whether direct, indirect, ancillary, scope I-II-III, etc. Overview Brief description of the recommendation Economy: could include energy cost savings, avoided operations and Action Documents maintenance costs, increased revenues through taxes or fees, job creation, Specific policies, requests for proposals (RFPs), guides, ordinances, action plans, toolkits, real estate property value increases, business attraction, employee and other examples from other states and regions ripe for inspiration and emulation productivity gains, and other economic benefits
For more information on all action documents, please visit rmi.org/carbonfreeregions. Health and Environment: could include improved air quality, greater opportunities for physical activity, and other health and environmental benefits Key Considerations Must-know perspectives on a given recommendation, including: Safety and Resilience: could include improved disaster preparedness, fewer pedestrian and traffic accidents, removal of combustion hazards, Pitfalls: potential challenges, caution flags, common mistakes emergency backup power sources, and other public safety and community resilience benefits Best Practices: how to do it well Aesthetics and Quality of Life: could include area beautification and Next Wave: “extra credit” for states and regions contemplating progressive greenscapes, less congested roads, improved comfort, reduced noise implementations of a given recommendation pollution, and other benefits that strengthen the region’s pride and bolster resident happiness
Global Spotlights Community Service and Equity: could include broader access to regional Regional governments around the world that are leading by example for a given services (especially for low-income residents), expanded options that recommendation empower residents with choices, and other benefits that serve the general public en masse Resources These additional resources provide useful guidance, examples, and general information to help staff and policymakers plan their own action for each recommendation
For more information on all recommended resources, please visit rmi.org/carbonfreeregions.
the carbon-free regions handbook | 7 the big picture
Handbook Recommendations at a Glance
Buildings Mobility Electricity Industry Land Use Waste Finance
1 Net-Zero Codes 4 Electric Vehicle 10 Renewable Portfolio 15 Methane 20 Sustainable Land 24 Organic Waste 27 Capital Availability Charging Standard Containment Management Diversion 2 Existing Building 28 First-Cost Solutions Upgrades 5 Fleet Electrification 11 Coal Plant 16 Clean Industrial 21 Open Space 25 Open Burn Ban Replacement Processes Conservation 29 Market Incentives 3 Robust Regional 6 Clean Vehicle 26 Waste Energy Efficiency Manufacturing 12 Responsive Rate 17 Shared Industrial 22 Agricultural Capture 30 Reduced Design Flows Methane Capture Procurement Costs 7 Clean Freight Delivery 13 Responsive Grid 18 Clean Ports and 23 Regenerative Planning Airports Agriculture 8 Public Transit 14 Community Solar 19 Clean Industrial 9 Mobility Vehicles Alternatives
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Map of Recommendation Examples
This map shows the locations of the examples referenced throughout this handbook, color-coordinated with the icons on the previous page.
the carbon-free regions handbook | 9 buildings
10 | the carbon-free regions handbook section
Buildings are our environment— a majority of humans spend most of their time in buildings at home, at work, and during their leisure time. As a result, buildings are places that people can relate to, and they provide multiple benefits when improved, including greater comfort, positive health effects, and lower ongoing costs. Buildings also account for almost one-third of global emissions, so they’re a critical sector to address. Regional governments have an essential Buildings role in setting standards and goals 1 Net-Zero Codes...... 12 2 Existing Building Upgrades...... 14 to improve this sector. 3 Robust Regional Efficiency...... 16 1 buildings Net-Zero Codes Phase in net-zero carbon or energy requirements for new construction
Establish a plan for regional building codes to either immediately require net-zero carbon or net-zero energy performance for new buildings, or to phase in a net-zero standard. Focus the policy on deep energy efficiency, including requirements for on-site solar where feasible and access to local renewable energy options.
Action Documents Find action documents at rmi.org/carbonfreeregions
California’s ambitious net-zero codes in the Integrated Energy Policy report and the revised 2019 Standards for Low-Rise Residential Buildings (pp. 296, 304–305)
Lombardy Region, Italy, buildings ordinance (in Italian)
12 | the carbon-free regions handbook buildings the carbon-free regions handbook | 13 regions the carbon-free The Path for Net-Zero Buildings in BC: The Case for The Case for Buildings in BC: Net-Zero for The Path , 2015 of Public Policy Action and the Role Conservation Energy for System Online Compliance Hyderabad Building Code (ECBC) for Code, a phased-in Stretch Rhode Island Residential codes net-zero toward step Toward Code: Progress Energy State Washington Buildings of Performance on the Energy EU Directive about Public Utilities Commission website California energy requirements net-zero
2030 Global Spotlights Spotlights Global all for | Developed a pathway (USA) State Washington 2030 through by energy-neutral be new to buildings building advanced requiring by energy codes improved energy renewable controls, appliances, envelopes, methods and other technologies, new buildings and buildings | Requires (ITA) Lombardy energy be net-zero to major renovations undergoing 2016, the EU (by across of the requirement ahead years ties building energy 2020 target); the EU’s as opposed to when the building or an deed a building’s to certificates unit is sold individual housing Resources Recommended rmi.org/carbonfreeregions at Find resources The Economic Times, India The Economic Source: Many builders/developers believe new net-zero believenew net-zero Many builders/developers up-front energy a substantial have buildings be mitigated belief can premium—this cost incentives, options, finance training, through and education Pair with financing and incentive structures structures with financing and incentive Pair with long-term costs higher up-front offset that energy savings viable are that solar options community Leverage generation on-site displace to Phase implementation to reduce strain on low- strain reduce to Phase implementation and small businesses in the communities income years few first on-site to related with any policies Integrate energy generation Build political support among key players in the players among key support Build political industries and construction estate real advanced for training job market Develop regional practices construction —Piyush Goyal, Former Power Minister, India Former Power —Piyush Goyal, “ECBC [energy conservation building code] 2017 is a leap forward toward toward is a leap forward building code] 2017 “ECBC [energy conservation change in a climate India’s capabilities to combat strengthening and offices all new buildings that recommended sustainable manner. I have be Super ECBC and net-zero energy buildings.” in the future
Key Considerations Key
2 buildings Existing Building Upgrades Adopt minimum efficiency standards to upgrade existing buildings
Require existing buildings to meet certain standards for energy efficiency in the form of building-equipment efficiency standards, targets for energy consumption metrics (like energy consumption per unit area), or other methods. These standards should set requirements that are specific to a given building use type.
Action Documents Find action documents at rmi.org/carbonfreeregions
Lombardy Region, Italy, ordinance DGR X/3904 (adopted on 24 July 2015) (in Italian)
Queensland MP 4.1 Sustainable Building Code
California building energy-efficiency standards for residential and nonresidential buildings (2016)
14 | the carbon-free regions handbook buildings
the carbon-free regions handbook | 15 regions the carbon-free Building Codes Assistance Project Building Codes Assistance requirements various about California’s Information buildings new and existing for Mountain Buildings, Rocky Better for Policies 2018 August Institute,
Resources Recommended rmi.org/carbonfreeregions at Find resources Global Spotlights Spotlights Global new and buildings buildings | Requires (ITA) Lombardy with Nearly comply to renovation extensive undergoing ties building energy Building standards; Zero-Energy when the building or an deed a building’s to certificates unit is sold individual housing existing to | Major renovations Queensland (AUS) achieve a minimum six- must houses and townhouses to renovations major rating; energy equivalence star achieve an average buildings must multiunit residential rating energy equivalence five-star is doubling energy | California (USA) California several by 2030 through buildings existing efficiency in for standards prescriptive targeted with efforts, by products, common and other lighting, electronics, and energy benchmarking requirements its expanding and analysis tools reporting standardizing by Standards become more stringent over time, over stringent more become Standards energy ready net-zero toward moving Resistance from real estate and construction and construction estate real from Resistance adoption slow could industries Could increase inequity if low- and moderate- inequity if low- Could increase to required are communities income financing or without targeted standards meet assistance implementation Reduce the burden on small building owners small building owners on the burden Reduce on larger first phasing, focusing tiered through implement ability to buildings with a greater help small Develop to financing mechanisms any up- reduce and homeowners building owners for provisions including burdens, cost front housing low-income to assistance market, estate the real Work with city leadership, and and commercial market, the construction risks, understand to owners/tenants residential and build support disruption, market reduce to requirements Consider tying energy upgrade or a such as a planned renovation triggers, building sale
“The best way to reduce emissions is to consume less energy—this is a challenge in existing is to consume less energy—this is a challenge in existing emissions “The best way to reduce starting from of promoting energy efficiency, the forefront is at Region buildings. Lombardy of public buildings all the way up to the whole building heritage.” the renovation Region, Italy Lombardy for Environment and Climate, Minister Cattaneo, —Raffaele
Key Considerations Key
3 buildings Robust Regional Efficiency Set region-wide energy-efficiency standards that spur deep improvements
Require electric and/or fossil fuel utilities and administrators involved in the energy supply chain to develop energy-savings programs for their customers. These energy efficiency resource standards (EERSs) can be put into effect through legislation or regulation and should be coordinated with a renewable portfolio standard (RPS) (see recommendation #10 Renewable Portfolio Standard).
Action Documents Find action documents at rmi.org/carbonfreeregions
State of Minnesota Executive Order 11-12, Providing for Job Creation through Energy Efficiency and Renewable Energy Programs for Minnesota’s Public Buildings
Flanders's decree establishing general provisions on regional energy policy (in French)
New South Wales Energy Saving Scheme Rule of 2009 photo © Benjamin Benschneider photo Bullit Center
16 | the carbon-free regions handbook buildings the carbon-free regions handbook | 17 regions the carbon-free Database for State Incentives for Renewables & Renewables for Incentives State for Database Economy an Energy-Efficient Council for American Database Policy and Local State Building 2030 Energy B3 Sustainable Minnesota Savings Scheme Energy New South Wales
(USA) Efficiency (USA) Standards Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources Global Spotlights Spotlights Global energy minimum (BEL) | Requires Flanders and a standards, climate internal performance, all new for renewables energy of from minimum share an urban require that conversions buildings and for application development license building standards | Adopted (USA) Minnesota reductions achieve energy consumption designed to toward 10% every years of 60% in 2010, increasing five a 20% requires 2030; of 100% by target an ultimate and requires facilities in energy use in state reduction the track to website the use of the B3 Benchmarking of these efforts success on obligation an | Places (AUS) New South Wales purchase to liable parties and other energy retailers of annual certificates energy savings in the form has a series of efficiency programs; through generated than 21,000 GWh more will save that projects supported their lifetimes billion over of energy and AUS$3
Develop a power purchase agreement (PPA) for for (PPA) agreement purchase Develop a power energy savings reduction 100% carbon add up to that and RPS EERS with an RPS closely Coordinate energy-efficiency on cost-effective Base targets Implement energy-efficiency business model the for incentives such as performance reforms administrator program Create an energy-efficiency certificate market market certificate an energy-efficiency Create buy and sell to market) certificate (e.g., a white energy credits
Key Considerations Key potential potential
435 Indio Way Indio 435 photo © Bruce Damonte Photography Damonte Bruce © photo mobility
18 | the carbon-free regions handbook section
Mobility and transportation are essential components of a community. They define how we access jobs, education, services, and social events. Transportation currently produces 14% of global greenhouse gas emissions. We can decrease the carbon intensity of transportation while increasing mobility choices and health benefits. For regional governments, the focus should be on enabling cities to invest in better mobility options, and Mobility building the interconnections that 4 Electric Vehicle Charging...... 20 5 Fleet Electrification...... 22 integrate these services across 6 Clean Vehicle Manufacturing ...... 24 7 Clean Freight Delivery...... 26 municipal boundaries. 8 Public Transit...... 28 9 Mobility Alternatives...... 30 4 mobility Electric Vehicle Charging Deploy region-wide infrastructure for charging electric vehicles
Increase and improve region-wide infrastructure for electric vehicles through funding, codes to support infrastructure build-out, public-private partnerships to facilitate third-party ownership of infrastructure, extra capacity to facilitate further growth, and public engagement for feedback on charger deployment.
Action Documents Find action documents at rmi.org/carbonfreeregions
Guangdong Province planning documents (in Chinese)
Electric Vehicle Chargers Ontario Program (EVCO) Program Guide, 2015
Gifu Vision for 2050 (in Japanese)
20 | the carbon-free regions handbook mobility the carbon-free regions handbook | 21 regions the carbon-free (roadside stations) throughout the throughout stations) (roadside michinoeki Global Spotlights Spotlights Global up cover funding to | Provides (JPN) Gifu Prefecture station; a charging of installing cost of the one-third to the prefecture all include prominent and accessible EV and accessible all include prominent prefecture of 500 the goal has reached and Gifu areas; charging of time ahead 33 years 2050, almost by stations charging and private- (CAN) | Working with public- Ontario vehicle of electric a network create to partners sector workplaces and at in cities, along highways, stations and public spaces 2,500 over installed | Has already (CHN) Guangdong 10,000 charging have with plans to stations charging 2020, including intercity by the province across stations along the highways stations quick-charging create to (ESP) | Launched an initiative Catalonia projects and run pilot infrastructure charging fast state-associated its through 2016 and 2019 between energy institute —Damià Calvet, Ministry for Territory and Sustainability, Catalonia, Spain Catalonia, and Sustainability, —Damià Calvet, Ministry for Territory “The Catalan Institute for Energy has launched different Institute for Energy has launched different “The Catalan into an EV-friendly Catalonia transform to initiatives of the Catalan the creation jurisdiction. One of these is Network, which will be Fast Recharge Infrastructures the end of 2019, and include a network of completed by km radius.” within a 30 stations recharging Removing Barriers to Electric Vehicle Adoption by Adoption by Vehicle Electric to Barriers Removing , Seattle Infrastructure Charging to Access Increasing 2014 and Environment, of Sustainability Office and Policy Electric Vehicle Comparison of Leading , 2016 in Europe Deployment Public-Private Through Electric Mobility Advancing , 2017 Case Study Oregon The Partnerships: portfolio project CALSTART Ontario Chargers Vehicle Electric Build Million to USD422 Invest “GPG Plans to China,” in Southeast Network EV Charging Regional 2018 Global, Yicai Emerging Best Practices for Electric Vehicle Charging Charging Electric Vehicle for Best Practices Emerging 2017 Transportation,
, The International Council on Clean on Clean Council , The International Infrastructure Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources Smart chargers can provide network management, management, network provide can Smart chargers and reduction, demand peak balancing, load integration vehicle-to-grid Reduction in petroleum consumption can can consumption petroleum in Reduction but revenues, transportation state decrease create that use taxes road up through be made can vehicles load-factor low for disincentives standards operating region-wide Lack of uniform deployment hampers stations charging for Implement electric vehicle (EV) charging (EV) charging vehicle Implement electric and in zoning requirements infrastructure and garages of new public parking permitting lots parking and technical programs, incentives, Provide and managers, property developers, to assistance infrastructure EV charging install that companies Develop operating and permitting standards for for standards and permitting Develop operating the state/region across uniformity station charging with charging partnerships Develop public-private to companies private and other providers network locations and maintain manage Remove barriers to the retail sale of electricity as sale of electricity the retail to barriers Remove competitive promote fuel and a transportation rates charging vehicle plug-in electric
Key Considerations Key
5 mobility Fleet Electrification Electrify government fleets, embolden private fleets
Facilitate the adoption of electric vehicles by commercial and government fleet operators through fleet emissions reduction requirements, targeted public policies, tax credits, and increased charging infrastructure. Promote electrification of taxi, carsharing, and police fleets.
Action Documents Find action documents at rmi.org/carbonfreeregions
City of Seattle Executive Order 2018-02: Green Fleet, an executive order directing city departments to accelerate a transition to a clean and green city fleet
Propelling Quebec Forward With Electricity: Transportation Electrification Action Plan 2015–2020
Qfleet Electric Vehicle Transition Strategy: For the Queensland Government motor vehicle fleet
22 | the carbon-free regions handbook mobility the carbon-free regions handbook | 23 regions the carbon-free Global Spotlights Spotlights Global for loans interest-free (GBR) | Offers Scotland delivers vehicles, new electric purchase to businesses and support, provides and advice procurement charge of installing the cost financial support toward direct phase includes A second vehicles. fleet for points to organizations authorities and other local funding for vehicles electric to switch in vehicles existing | Replacing Queensland (AUS) with plug-in hybrid electric fleet the government pools, carsharing into EVs introducing models, vehicle existing match to vehicles electric battery introducing agencies and incentivizing replacements, vehicle lease vehicles up electric take to buses to all 16,000 of its Shenzhen (CHN) | Converted of a half the cost a subsidy covering through electric stations new of charging bus, and added thousands drivers private also be used by can buses that for electrify to projects pilot Quebec (CAN) | Promoting businesses to for rebates providing fleets, taxi the to adding 1,000 EVs their fleets, electrify charging and installing 2020, by fleet government buildings government at stations is a top state (IND) | Maharashtra Maharashtra government’s Indian national the to contributor a has signed state E-Mobility mission—the energy with a state-run of understanding memorandum charging and install EVs lease to service company in Maharashtra offices all government at infrastructure Electrification Roadmap: Revolutionizing Revolutionizing Roadmap: Electrification Security, Energy and Achieving Transportation 2010 Coalition, Electrification electric deploying A guide to Plugged-In Fleets: Group , The Climate in fleets vehicles fleet your electrifying for A roadmap Initiative Fleets Electric State Washington Plan Phase 2: An Action on Scotland Switched Growth for Transition to a Global Zero-Emission Vehicle Fleet: A Vehicle a Global Zero-Emission to Transition , The Governments for Agenda Collaborative 2015 Transportation, on Clean Council International
Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources
Prepare to meet increased power requirements requirements power increased meet to Prepare fleet for installed are chargers when multiple Assess feasibility and opportunities for pooled and opportunities for Assess feasibility and private government with other purchases stronger discounts, price greater secure to fleets and improved and conditions, terms contract and service agreements maintenance Offer incentives for placing electric vehicles in for placing electric incentives Offer fleets and car-sharing rental for requirements vehicle electric Establish fleets government Offer online resources and in-person trainings to trainings and in-person resources online Offer departments and procurement managers fleet economics the favorable articulate that such as high-occupancy incentives nonfiscal Offer lane exemptions (HOV) vehicle Equip all new fleet vehicles with telematics telematics with vehicles all new fleet Equip data gather to hardware “Our Switched on Fleets initiative has delivered initiative “Our Switched on Fleets vehicles] low-emission [ultra over 500 ULEVs sector.” into the Scottish public —Humza Yousaf, Minister for Transport and the Islands, Scotland, UK Minister for Transport —Humza Yousaf,
Key Considerations Key charging
6 mobility Clean Vehicle Manufacturing Set manufacturing efficiency requirements for vehicles
Set manufacturing efficiency requirements for vehicles, including zero-emission vehicle (ZEV) standards, a low-carbon fuel standard, and air- quality standards.
Action Documents Find action documents at rmi.org/carbonfreeregions
British Columbia Renewable and Low-Carbon Fuel Requirements Regulation, 2017
California’s Zero-Emissions Vehicles Regulations
24 | the carbon-free regions handbook mobility
the carbon-free regions handbook | 25 regions the carbon-free Global Spotlights Spotlights Global renewable minimum (CAN) | Requires British Columbia diesel) and 4% for and gasoline (5% for fuel content of fuels of 15% intensity in carbon reduction a requires all transportation, for a 2010 baseline from 2030 by for military or aircraft by fuel used for except with supply the province to refiners requires operations; pollution, less carbon emits that and diesel gasoline less, including the pollute fuels that or provide and transporting, extracting, from comes pollution that time over stronger becomes The standard processing. pollution of carbon 3.4 million tons avoid to with a goal Pradesh Uttar the draft (IND) | Created Pradesh Uttar to 2018, a roadmap Policy Manufacturing Electric Vehicles through in the state additional EV manufacturing promote expected are that and concessions special incentives EV capacity, in EV manufacturing investments attract to and and assembling capacity, manufacturing battery and swapping charging the development of battery in line with the state’s in the state EVs for infrastructure Policy Promotion and Employment Investment Industrial | Combines pollutants and | Combines pollutants (USA) California a single coordinated into emissions gas greenhouse to support and including efforts of standards, package vehicles of plug-in hybrid electric the numbers accelerate has the long-term in the state; vehicles and zero-emission 2025. Includes by in California of 1.5 million ZEVs goal of sell specific numbers to manufacturers for requirement vehicles, electric battery including technologies, car clean vehicles and plug-in hybrid electric vehicles, fuel cell (CA, CT, states | Nine US Plan (USA) ZEV Action Multi-State sales of zero- increased ME, NJ) require RI, VT, MD, MA, NY, of the California auspices under the emission vehicles with requirements program, vehicle low-emission 2025, about 15% of new vehicles time. By over increasing be ZEVs to will be required states sold in the participating Zero Emission Vehicle Municipal Handbook: A Land Land Municipal Handbook: A Vehicle Emission Zero and Towns Cities Use Guide for 1.5 million toward A roadmap 2013 ZEV Action Plan: by roadways on California zero-emission vehicles 2013 Vehicles, Zero-emission Program Cars Clean Advanced California B.C.,” from Lessons fuel standard? is a clean “What Energy Canada Clean Action Plan, Vermont Emission Vehicle Zero Vermont 2014 Cabinet, Climate , ZEV Program ZEV Action Plan, ZEV Program Multi-State 2014 Force, Task Implementation
on Working Group Interagency 2025, Governor’s
Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources Up-front costs of zero-emission vehicles remain vehicles of zero-emission costs Up-front models conventional equivalent higher than Ensure development of interoperability standards standards development of interoperability Ensure stations charging vehicle electric for Establish a retirement and replacement program program and replacement a retirement Establish high- older, replace to people for easier it make to vehicles with cleaner polluting vehicles increase that ZEV requirements with modest Start familiar more become time as consumers over improving of continually range with the growing ZEV products Require a percentage of vehicles purchased by by purchased of vehicles percentage a Require be zero-emission to agencies state/regional
Key Considerations Key
vehicles 7 mobility Clean Freight Delivery Transition to cleaner freight vehicles and improve delivery logistics
Improve freight efficiency through setting efficiency standards, building efficient links between urban, regional, and national logistics networks, and adopting market-based congestion mitigation policies. Address logistics sprawl through planning and zoning decisions and use fiscal and nonfiscal incentives to accelerate the adoption of electric trucks.
Action Documents Find action documents at rmi.org/carbonfreeregions
Catalonia’s Law 16/2017 establishing a carbon tax on heavily polluting freight and shipping vehicles (in Spanish)
Go to 2040: Comprehensive Regional Plan, Chicago Metropolitan Agency for Planning, 2010, Chapter 12, “Create a More Efficient Freight Network”
26 | the carbon-free regions handbook mobility the carbon-free regions handbook | 27 regions the carbon-free Global Spotlights Spotlights Global of registration issuance (CHN) | Discontinued Shenzhen electric June 2017 and subsidizes diesel trucks as of for and no tolls trucks pay Electric trucks and chargers. unlimited and have use bus lanes, can fees, parking trucks are (while diesel center the urban to access of entry on hours and limitations strict to subject permissible routes) ships polluting on heavily a tax (ESP) | Places Catalonia and vehicles to receivers | Incentivizes (USA) New York New York, daytime relieve to night delivery carriers from accept security with minimal goods’ and provides congestion, staffing off-hours or no need for , Rocky Mountain Institute Mountain Logistics, Rocky Trucking and Efficiency in Chinese Improving Source:
Moving Freight: A Strategy for More Efficient Freight Freight Efficient More for A Strategy Freight: Moving Go Electric, to Fleets for Sense It Makes Where 2018 NACFE, Michael Browne, Wang, Cara José Holguín-Veras, “The New Darville Wojtowicz, Jeffrey Hodge, Stacey for City Lessons Delivery Project: Off-hour City York 2014 125, March to Paper Series A White Strategies: Efficiency Freight Action Freight Sustainable the California Inform Improving Efficiency in Chinese Trucking and Efficiency in Chinese Improving
, Queensland Government , Queensland Government Movement Sciences - Social and Behavioral Procedia ,” Logistics Plan, 2016 , Rocky Mountain Institute, August 2016 August Institute, Mountain , Rocky Logistics Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources Promote truck platooning, a method in which a method truck platooning, Promote reduce to other each trucks closely follow fuel consumption with overhead “e-highways” dedicated Create trucks for infrastructure electric Implement mandates or incentives for electric trucks electric for or incentives Implement mandates Promote logistics density and intermodal density and intermodal logistics Promote through areas in metropolitan connectivity planning and zoning regional integrated Optimize freight logistics, including by commodity commodity by including logistics, freight Optimize data real-world on based type, vehicle and/or about truck movement serving high-value centers distribution that Ensure delivery can parcel and e-commerce like sectors core in the urban stay “Traditional logistics operational models cannot continue. In accord with the demands of with the demands models cannot continue. In accord operational logistics “Traditional modern logistics management; we must adopt the concepts of an ecological society, develop green … and and automation IT use, standardization, ceaselessly improve emissions.” and reduce logistics to save energy —Development Research Center of the State Council, China Council, Center of the State —Development Research
Key Considerations Key
8 mobility Public Transit Enhance public transit through improved infrastructure and smart logistics
Support public transit infrastructure through investing in new bus transit routes, donating land (or selling land at reduced prices) for stations and terminals, promoting transportation demand management and transit-oriented development, and implementing real-time information.
Action Documents Find action documents at rmi.org/carbonfreeregions
HB2 Implementation Policy Guide, Commonwealth Transportation Board, 2015
Quebec Sustainable Mobility Policy, 2030 (in French)
Quebec Sustainable Mobility Policy Action Plan, 2018–2023 (in French)
“If you imagine without this sophisticated system, we would have been a very car-oriented city. We would have been like a traffic hell.”
—Chang Yi, a transportation specialist at the Seoul Institute, South Korea Source: CNNMoney, Seoul
28 | the carbon-free regions handbook mobility the carbon-free regions handbook | 29 regions the carbon-free Global Spotlights Spotlights Global in emissions gas greenhouse | Will reduce Quebec (CAN) and 2030 1990 levels by 37.5% below to sector transport to with access 70% of the Quebec population provide in mobility services; beginning sustainable four least at of 100% electric the acquisition 2025, will only finance transportation passenger for vehicles public statewide | Has the largest (USA) New Jersey of provider and is the third-largest system transit to tax credit offers in the US; and light rail bus, rail, eligible near in facilities invest that employers large for incentives New Jersey creates stations. rail the areas and redevelop revitalize that communities mixed-use compact, into facilities their transit around component residential neighborhoods with a strong fare under a common | Put bus and subway Seoul (KOR) a more place and put into the routes reorganized system; and commuter, of trunk, feeder, system comprehensible through information real-time lines; and gathers express embedded in roads and sensors GPS American Council for an Energy-Efficient Economy Economy an Energy-Efficient for Council American on Transportation Database Policy Local and State Efficiency System in the United Microtransit Exploring UpRouted: and Support Public Fund States How On Track: 2015 Legislatures, Miles of Vehicle Reducing for Strategies State-Level 2017 Studies, Transportation Fare Transport Public All: Integrated Fits “One Card Transportation Demand Management: State of the of the Demand Management: State Transportation
2018 Transportation, for , Eno Center States of State Conference , National Transportation of Institute of California , University Travel Seoul Solution, 2017 ,” System , Smart Growth America, 2013 America, , Smart Growth Practice Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources —André Fortin, Ministre des Transports, de la Mobilité durable et de l’Électrification des transports (Minister of Transport, Sustainable Mobility, and Sustainable Mobility, of Transport, (Minister des transports et de l’Électrification durable de la Mobilité des Transports, —André Fortin, Ministre Quebec, Canada Electrification), Transport “Sustainable mobility means easier, more economical, and faster travel, faster travel, economical, and easier, more “Sustainable mobility means Considering the challenges into the very fabric of our communities. integrated as well as Québec’s ambitious social change and an aging population, of climate future.” this is a necessary societal choice for our and economic aspirations, Partner with microtransit agencies—privately agencies—privately with microtransit Partner transportation shared and operated owned and on-demand routes flexible offer systems—to used corridors heavily to connect scheduling to Support pilot projects that incorporate incorporate that projects Support pilot vehicles transit public autonomous Reduction in petroleum consumption can can consumption petroleum in Reduction but the revenues, transportation state decrease taxes use road be made up through can decrease vehicles load-factor low for disincentives create that Adopt public policies that imbed transportation imbed transportation public policies that Adopt the land development into demand management Explore public-private partnerships to expand or expand to partnerships public-private Explore third- services through transportation improve of public and financing ownership party Work with employers and communities to provide provide to and communities Work with employers commuting for alternatives transportation
Key Considerations Key
process infrastructure
9 mobility Mobility Alternatives Support regional nonmotorized infrastructure
Promote nonmotorized travel through funding for bicycle and pedestrian projects and programs, policies to support multimodal transportation, and laws that ensure the safety of nonmotorized travelers.
Action Documents Find action documents at rmi.org/carbonfreeregions
Denmark—On Your Bike: The National Bike Strategy, 2014
Cycle Policy 2002–2012 City of Copenhagen
30 | the carbon-free regions handbook mobility , Clean Air Asia Center, 2013 Air Asia, Clean Center, the carbon-free regions handbook | 31 regions the carbon-free ’ Toolbox The Best Complete Street Initiatives of 2017, Smart Initiatives Street The Best Complete 2017 America, Growth A Travel: and Pedestrian Bicycle Accommodating of Department , US Approach Recommended Bicyclists of American , The League Model Legislation Cycling Plans, Strategies, and Design Guidelines , GIZ and Design Strategies, Plans, Cycling 2016 Mobility, and Transport Planning, Victoria Transportation Non-motorized Institute Policy Transport in Asian Cities: Transport Non-Motorized Promoting , Manual Practice Transport—Best Non-Motorised Africa, South Affairs, of Environmental Department A handbook of policy and DOT: The Innovative 2012 Initiative, Transportation
Transportation Policymakers 2014 Smart and State America , Smart Growth practice Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources Provide grants to enable experimentation of enable experimentation to grants Provide that new programs business models and travel nonmotorized encourage Reallocating road space to nonmotorized nonmotorized to space road Reallocating supporting without proper options transport can use of these alternatives increase to incentives on roads in congestion increases unwanted to lead Map existing infrastructure, including facilities including facilities infrastructure, Map existing in the identify gaps to jurisdiction, under local bicycling and network walking multimodal accommodation appropriate Require roadways or state-funded on all state-owned all transport planning into nonmotorized Integrate and land-use planning activities policy directing by streets a complete Adopt routinely to and engineers planners transportation to right-of-way the entire design and operate of age, regardless all users, for access enable safe or mode of transportation ability,
| Invested over $160 million in bicycle over Denmark (DNK) | Invested and pedestrian-only including bike- infrastructure, bicycle lanes, dedicated separate 7,000 km of bridges, people get to of cycle superhighways and a network more now are There the city center. the suburbs to from on the streets bicycles than cars and walking | Incorporates (USA) State Washington all transportation into cycling design requirements projects appropriate and other projects infrastructure Spotlights Global Key Considerations Key
electricity
32 | the carbon-free regions handbook section
The future is electric. Buildings, vehicles, industrial processes, and consumer products are increasingly turning to electricity for power. But for electricity to service all of these needs, we must make sure that our sources for electricity come from renewable or zero-emission energy. Because utilities, electric grids, and rate design usually happen at a regional scale, this is a critical area to drive change. Electricity
10 Renewable Portfolio Standard...... 34 11 Coal Plant Replacement...... 36 12 Responsive Rate Design ...... 38 13 Responsive Grid Planning...... 40 14 Community Solar...... 42 10 electricity Renewable Portfolio Standard Set or increase a renewable portfolio standard (RPS)
Require electric utilities to secure a minimum percentage of their electricity from renewable generation sources, focusing on ambitious “reach” targets or even 100% renewable energy. This should be paired with an energy efficiency resource standard (See recommendation #3 Robust Regional Efficiency).
Action Documents Find action documents at rmi.org/carbonfreeregions
HB623. Hawaii state legislation enacting 100% RPS
Australian Capital Territory Next Generation Renewables Auction Request for Proposals
“With 100% renewable electricity in 2020 locked in, we will reduce emissions by 40%. Our next challenge is net- zero emissions by 2045.”
—Shane Rattenbury, Minister for Climate Change, Justice, Corrections, Consumer Affairs, Mental Health, and Road Safety, Government of Australian Capital Territory, Australia
34 | the carbon-free regions handbook electricity the carbon-free regions handbook | 35 regions the carbon-free , the Charge Leading States Ready: Renewables Council, 2017 Climate and Goals, Standards Portfolio Renewable State Legislatures State of Conference National 2017 Annual Standards: Portfolio Renewables US National Berkeley , Lawrence Report Status 2017 (USA) Laboratory, Capital , Australian 100% Renewable Canberra Government Territory
Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources Global Spotlights Spotlights Global a 90% renewable | Set (AUS) Region Capital Australia feed-in 2020, developed a legislated by energy target that process auction reverse mechanism and tariff for certainty of investment a high degree provides 340 MW of Already, and financiers. developers project including tariffs, feed-in been awarded have projects farm, photovoltaic (20 MW) solar largest Australia’s 2014 in September completed by all renewable go utilities to | Requires (USA) Hawaii for targets increasing incrementally 2045, with interim, 2020, 2030, and 2040 of 100% a target | Set (JPN) Prefecture Fukushima nuclear energy 2040, decommissioning by renewable portfolio and building a renewables generation power wind, and a offshore small hydro, includes solar, that small amount of biomass Go beyond electricity—consider economy-wide economy-wide Go beyond electricity—consider of electricity inclusive energy targets, renewable etc. heating, transportation, complement to target storage Include a renewable energy targets renewable high-percentage Determine whether a utility and its subsidiaries/ its a utility and whether Determine to portfolios generation their can pool affiliates the meet must or if each the standard, meet individually standard Determine whether customer-sited, behind-the- customer-sited, whether Determine utility renewable toward count renewables meter compliance energy target Set intermediate targets and track progress progress and track targets intermediate Set them toward energy renewable Specify if energy efficiency, of origin, and distant certificates/certificates meeting toward count local) (versus generation (or public utilities commission the state Empower to agency) oversight or other similar regulatory the lack thereof and penalize compliance enforce
Key Considerations Key
requirements 11 electricity Coal Plant Replacement Retire existing coal plants and reject plans for new coal plants
Phase out coal-fired electricity generation through a combination of accelerated retirement for existing plants, emissions caps, a carbon tax, or other regulatory standards, and policies that prohibit financing of, and/or place an outright moratorium on, new coal-fired power plant construction. Provide viable alternatives in regions where coal-fired generation is expanding due to population and demand growth and rural electrification.
Action Documents Find action documents at rmi.org/carbonfreeregions
Executive Order No. 9 Declaring the Province of Negros Oriental as an Environment-Friendly and Clean Energy Province, 2017
“Carbon Pricing and Complementary Policies: Electricity,” Climate Leadership Report to Minister, Alberta, Canada, November 2015, pp. 47–52
“Ending Coal for Cleaner Air Act,” Legislative Assembly of Ontario, 2015
“SB 1547: Clean Electricity and Coal Transition Plan,” State of Oregon, 2016
36 | the carbon-free regions handbook electricity the carbon-free regions handbook | 37 regions the carbon-free , Rocky , Rocky Portfolios of Clean Energy The Economics 2018 Institute, Mountain on the Phasing Out of Coal, Policies Government 2015 Europe, Network Action Climate of Government ,” Pollution “Phasing Out Coal Canada Alberta, Canada of Ontario, Province ,” Coal “The End of
Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources Global Spotlights Spotlights Global “an itself | Declared (PHL) Oriental Negros energy province” and clean friendly environmentally and local offices government that and declared any permit, issue authorization, not “shall agencies the of support to endorsement, or any expression plants.” power development of coal-fired or state province first the (CAN) | Became Ontario coal-fired permanently ban to in North America action via legislative generation 2030 by out coal phasing (CAN) | Entirely Alberta financial support, and policy mandates, through communities; affected for retraining employment tax, a carbon generators, to payments transition gas natural and standard, portfolio and renewable fuel switching go to vote to state US the first | Became (USA) Oregon and has legislation, via bipartisan 2035) (by coal-free State neighboring Washington joined by been since
Source: The Visayan Daily Star Source: Eliminate the use of fossil fuels in favor of clean of clean fuels in favor the use of fossil Eliminate storage, of renewables, energy portfolios demand and flexible efficiency, Support for affected communities and affected Support for retraining, be crucial, including individuals can to financial assistance bridge hiring, and providing workforce coal legacy Emissions restrictions, a carbon tax, and/or cap- and/or tax, a carbon restrictions, Emissions complementary offer programs and-trade be as effective but, not may on their own, tactics retirements mandated as accelerated, to generators to payments” Consider “transition retirements for accelerated capital stranded offset Don’t overlook the role of denying finance/lending of denying finance/lending the role overlook Don’t projects generation coal-fired to Make sure to include post-coal energy planning to energy to planning include post-coal to sure Make capacity generation backfill and capture carbon whether as to Be explicit allowable are technologies storage —Roel Degamo, Governor of Negros Oriental, The Philippines “For me, there would be massive destruction to the environment if we develop or establish a would be massive destruction to the environment if we develop or “For me, there will push for emissions. We its massive carbon dioxide plant using coal because of power plants, power windmills, hydro solar energy, for example, like, and clean energy, renewable not destructive.” they are we should continue because what and geothermal plants. These are
Key Considerations Key
12 electricity Responsive Rate Design Support rate designs that encourage energy efficiency, renewable energy, and distributed energy resources (DERs)
Require utilities to evolve from legacy “block” rates to technology-agnostic, modernized rate designs—such as granular time-of-use pricing and real-time dynamic pricing—that better reflect the reality of today’s and tomorrow’s grid, and that appropriately value the costs and benefits of DERs, energy efficiency, and flexible demand.
Action Documents Find action documents at rmi.org/carbonfreeregions
“SB 2939: Ratepayer Protection Act,” State of Hawaii
“SB 1652: Energy Infrastructure Modernization Act,” State of Illinois
“Directive on Common Rules for the Internal Market in Electricity,” European Commission
38 | the carbon-free regions handbook electricity the carbon-free regions handbook | 39 regions the carbon-free Rate Design Options for Distributed Energy Energy Distributed Design Options for Rate the Distribution Edge: Electricity Design for Rate , Rocky Future Resource a Distributed Pricing for Institute Mountain Using Regulation Performance-Based State Electric Utilities, Grid US Plans for Rate Multiyear US Consortium, Laboratory Modernization of Energy Department Design and Rate Resources Energy Distributed Utility Commissioners Design,” Center: Pricing and Rate “Knowledge Project Assistance Regulatory
, American Public Power Association Public Power , American Resources Association of Regulatory Compensation, National Global Spotlights Spotlights Global utilities investor-owned | The state’s (USA) California rates electricity time-of-use default to switch must in 2019 starting a offer utilities to (EU) | Requires Commission European customers all to dynamic pricing option utility—majority | The electric (KOR) South Korea electricity advanced the government—has by owned total of peak, alignment season, by varies pricing that variables demand, and other peak consumption, Resources Recommended rmi.org/carbonfreeregions at Find resources Align rates to desirable outcomes for grid operation, grid operation, for outcomes desirable to Align rates net- (e.g., solar-only specific technologies to not rate) vehicle household electric tariff, metering utilities from for the game” the rules of “Change performance-based to ratemaking cost-of-service and utility incentives realign to ratemaking business model marginal Add an emissions signal (e.g., real-time economic grid emissions) alongside traditional signals embedded in modernized market structures rate Plan for how to simplify and/or automate the automate simplify and/or to how Plan for shift a likely despite customers for experience overall complex more granular, more to structures rate Consider how rate structure changes might affect changes structure rate how Consider households and moderate-income low- Develop a transition plan to new rates, including new rates, plan to Develop a transition or opt-out; opt-in default are customers whether participation greater far create options opt-out smart grid, and grid modernization, Evaluate needs (e.g., smart meter digitalization modernized for enabler as a key deployment) structures rate
Key Considerations Key
13 electricity Responsive Grid Planning Support grid planning that puts distributed energy resources on an equal footing with other generation sources
Make distributed energy resources (DERs)—including customer-sited renewables, behind-the-meter storage, energy efficiency, and flexible demand—a central part of an integrated, modernized grid and resource planning process. Revise legacy processes that make sweeping assumptions about demand growth and meet that demand exclusively through centralized bulk generation.
Action Documents Find action documents at rmi.org/carbonfreeregions
“Order on Distribution System Implementation Plan Filings,” State of New York Public Service Commission
Chapter 39-26.6: Rhode Island’s Renewable Energy Growth Program
40 | the carbon-free regions handbook electricity the carbon-free regions handbook | 41 regions the carbon-free Global Spotlights Spotlights Global sell to utility customers | Allows (USA) Rhode Island output under long-term generation their renewable prices at fixed tariffs electricity the state’s | Rebuilding (USA) New York and to participants include DERs as active to markets and planning, including utility business models evolve plans implementation system distribution requiring Pilot Control Denmark (DNK) | Launched the Cell that microgrids DERs as regional leverage to Project renewable high-percentage for flexibility also provided (especially wind) energy integration Greentech Media Greentech Source: Distributed Energy Resources Integration: Policy, Policy, Integration: Resources Energy Distributed New from Perspectives and Regulatory Technical, Alliance Power , Smart Electric California and York , Black & Future Energy Planning the Distributed Alliance Power Smart Electric and Veatch of Distributed Integration Effective on the Study the Flexibility to Providing for Resources Energy the European to Final Report Electricity System: of Value the Full Grid: Realizing The Integrated , Electric Resources Energy and Distributed Central Institute Research Power Energy Planning the Distributed the Meter: Beyond DER Planning by of Integrated – A Case Study Future Municipal Utility District, Smart Electric Sacramento Alliance Power State Engagement in Electric Distribution System System Electric Distribution Engagement in State of Energy Department Consortium, US
Commission, Sweco , Grid Modernization Laboratory Laboratory Planning, Grid Modernization Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources
Rebuild electricity markets to be truly DER-centric be truly DER-centric to markets electricity Rebuild add DERs to to ways on” finding “bolt versus top-down, originally designed for markets existing grid planning centralized Broad stakeholder engagement—including utilities, engagement—including stakeholder Broad and DER technology providers advocates, customer outcome a successful for important —is critically and third-party-owned customer- Define how requirements utility toward credited DERs are Stipulate that plans must consider DERs via non- consider plans must that Stipulate stacks, value granular alternatives, wires as an attributes and other benefits, locational assets system bulk power traditional to alternative Require that utilities regularly submit an updated submit an updated utilities regularly that Require plan, plan, grid modernization resource integrated plan, or similar that resources distribution includes DERs —Troels Gregersen, Nordics energy expert at PA Consulting Group, Denmark PA at energy expert Nordics —Troels Gregersen, “We are moving onto more and more local production capacity for local production and more moving onto more are “We windmill, if they If they have their own companies and households. if they have other means of production, solar panels, have their own they can support the system.”
Key Considerations Key
14 electricity Community Solar Support community-scale solar to expand solar access
Make the benefits of distributed solar photovoltaics (PV) accessible and more affordable for customers beyond the reach of rooftop PV through community-scale solar PV projects located in or near the communities they serve. Leverage various combinations of fractional project ownership or investment, subscription to projects’ solar generation output, and virtual metering that credits a customer’s utility bill.
Action Documents Find action documents at rmi.org/carbonfreeregions
The Telangana Solar Power Policy 2015
“216B.1641 Community Solar Garden” Minnesota Statutes photo © RMI, Joerg Boethling © RMI, Joerg photo
“Minnesota’s success with community solar offers a valuable model for broad-based solar growth.”
—Bill Grant, Deputy Commissioner of Division of Energy Resources, Minnesota, USA
42 | the carbon-free regions handbook electricity The Economic Times, India The Economic Source: the carbon-free regions handbook | 43 regions the carbon-free | Provides on-bill financing for | Provides
Global Spotlights Spotlights Global and easier incentives (IND) | Provides Telangana can that parks” “solar for development requirements of support as a variety as well generation, solar deliver and financing services such as training Minnesota (USA) Minnesota consumers subscribed to community solar programs, solar programs, community subscribed to consumers even if they produce all the electricity for paid who get on the number of is no cap than they use; and there more has grown program possible. Its solar projects community January 358 MW installed 1,000% since 2017 to nearly its | Expanded (AUS) New South Wales Victoria, including solar, energy projects, community support for policy and regulatory identifying and removing by of distributed as a “true value such means by barriers, identify and quantify the public to study generation” benefit of such projects community Belgium (BEL) | Crowdfunded Flanders, installations rooftop commercial in large investment allows that paradigm virtual net-metering a and created a by owned in a PV system buy a share a household to third-party Renewables 2016 , REN21, pp. 135–139 , REN21, pp. ,” Solar Energy Industries Association Solar Energy Industries Community Solar,” A Guide to Community Solar: Utility, Private, and Private, Community Solar: Utility, A Guide to Department , US Development Project Non-profit of Energy ,” Energy “Community Renewable A How-to Energy: Community-Owned Renewable and Regulatory Solar: Policy Community Shared RMI and Solar,” Community Proposals: for “Request 2017 cooperatives, electric six rural Is Supporting Community-Based Minnesota How Beyond Sharing: How Communities Can Take Take Communities Can Sharing: How Beyond Local for , Institute Power of Renewable Ownership Global Status Report , National Renewable Energy Laboratory Renewable , National Considerations “
Agency Guide, Community Power Renewables Self-Reliance
Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources Include specific carve-outs for low- and moderate- Include specific carve-outs low- for households income (e.g., as rooftops public land as well Make as buildings, schools) available municipal sites host project Don’t underestimate the complexity of the complexity underestimate Don’t and management, enrollment, subscription business models solar in shared retention Include requirements such as minimum Include requirements community by owned of a project percentage of a project and maximum percentage members ensure to a single entity, be subscribed by can that and benefit participation true community Keep open possible ownership models, such as models, possible ownership open Keep and privately, municipal-, utility-, cooperative-, mechanisms citizen-owned Pass regulations that allow virtual metering (i.e., (i.e., virtual metering allow that regulations Pass ownership, project third-party metering), remote expand to sales electricity third-party and/or opportunities and flexibility participation market —G. Jagadish Reddy, Telangana Energy Minister, India Energy Telangana —G. Jagadish Reddy, “The government of Telangana is committed to providing good quality, clean power to industry and to clean power quality, good is committed to providing of Telangana “The government commissioned ahead of solar plant, which has been state-of-the-art ... This the people of the state this season.” requirement meet our peak power schedule, will help us
Key Considerations Key
industry
44 | the carbon-free regions handbook section
Industry is the foundation of many regional economies. It is also the source of 28% of global greenhouse gas emissions, and its impact is growing faster than other sectors. Although industrial companies may be based in a single city, their work and influence usually extend across city boundaries. Regional governments provide the right scale to support industry in transitioning to low-carbon solutions. Industry
15 Methane Containment...... 46 16 Clean Industrial Processes...... 48 17 Shared Industrial Flows ...... 50 18 Clean Ports and Airports...... 52 19 Clean Industrial Vehicles...... 54 15 industry Methane Containment Implement methane leakage penalties and pursue methane capture
Eliminate wasted methane that is leaked into the atmosphere as a by-product of natural gas production or crude oil production, waste management, or other sources, and capture methane for productive and low- impact uses. Methane leaks should be measured, and should result in financial, regulatory, and other penalties.
Action Document Find action documents at rmi.org/carbonfreeregions
California Oil and Gas Regulation, which provides information about measuring and limiting methane emissions
46 | the carbon-free regions handbook industry
the carbon-free regions handbook | 47 regions the carbon-free Initiative Methane Global the National from Initiative methane State Legislators State of Conference short-lived reducing for strategy California's pollutants climate Partnership & Gas Methane Oil CCAC
Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources Global Spotlights Spotlights Global Gas Leak a Natural | Approved (USA) California and practices best establish to Program Abatement leaks. methane reduce to requirements reporting gas oil and natural on a regulation Established includes that and storage processing, production, emissions on methane restrictions and devices control | Requires (USA) Colorado emissions methane reduce to practices management and venting. leaks like actions from result typically that regulate to state US first the became In 2014, Colorado operations oil and gas and emissions from leaks methane | Reducing methane leakage, leakage, methane | Reducing (USA) State New York enhancing emission sources, methane addressing regulatory and improving requirements, reporting consistency landfills municipal British Columbia (CAN) | Requires install to of annual waste or more tons 1,000 generating systems management landfill gas Reward companies that supply and distribute supply and distribute that companies Reward intensity gas greenhouse with low gas natural sources quickly identify large Aerial imaging can quickly be targeted which can leakage, of methane and mitigated Do not plan infrastructure upgrades that do not do not that upgrades infrastructure plan Do not as they emissions, soon be will methane manage replacement and require out of date Implement mandatory oil and gas infrastructure infrastructure oil and gas Implement mandatory programs and repair reporting, detection, leak and support infrastructure gas old natural Study continuously zero-emission, to upgrades systems monitored supply and distribution gas natural Regulate and carbon methane reduce to infrastructure chain value the entire emissions across infrastructure, gas When planning new natural a global will provide gas natural that confirm alternatives all reasonable benefit to environmental
Key Considerations Key
16 industry Clean Industrial Processes Electrify industrial fuel processes and disincentivize greenhouse gas-heavy industrial fuel consumption
Convert industrial processes to use fuels that minimize or eliminate greenhouse gas emissions. Where possible, electrify industrial processes and leverage renewable electricity sources.
Action Document Find action documents at rmi.org/carbonfreeregions
Brazilian biofuels policy, RenovaBio, and implementation documents (in Portuguese)
48 | the carbon-free regions handbook industry the carbon-free regions handbook | 49 regions the carbon-free Guide to cleaner industrial processes with specific with processes industrial cleaner Guide to industry by and recommendations technologies ” Industry Process in the Dutch “Electrification
Global Spotlights Spotlights Global in biofuel leader is a global | Brazil (BRA) Brazil as RenovaBio, known a law, sanctioned and production enhance production, support biofuel seeks to that commitment and support Brazil’s predictability, market Agreement the Paris to in government, (GBR) | The Scottish Scotland lays developed that a plan with industry, coordination It also industry. decarbonize to actions key out several of Industry Steering developed the Decarbonisation of support industry achieving in requirements to Group system the EU emissions trading Resources Recommended rmi.org/carbonfreeregions at Find resources Develop policies that eliminate the use of fossil the use of fossil eliminate Develop policies that process industrial fuels for electrification incentivize that Develop programs renewables with on-site In areas where the electric grid is not clean, clean, is not grid the electric where In areas emissions carbon may increase electrification Not all industrial processes currently have have currently processes all industrial Not options electrified effective Invest in research and development for electrifying electrifying and development for in research Invest processes new industrial with new low- experiment with industry to Partner applications or electric fuels carbon
Key Considerations Key
17 industry Shared Industrial Flows Develop enabling policies for sharing waste and heat flows throughout industrial districts
Implement enabling policies for allowing the sharing of waste, heat and materials, and energy, including district-level heating, cooling, and microgrid solutions, within and outside of industrial districts. This can include the support of eco-industrial parks (EIPs), circular economy districts, and/or other district formats that support the reduction of waste.
Action Document Find action documents at rmi.org/carbonfreeregions
UNIDO Eco-Industrial Park Implementation Handbooks (in multiple languages)
Key Considerations
It is difficult to establish ownership and maintenance requirements of shared heating or cooling infrastructure
Colocation of industrial and nonindustrial buildings (e.g., residences) to share waste heat can present zoning challenges
Establish energy tariffs that share the value of energy sources among producers and users
Establish trash, recycling, and water programs that value the sharing of appropriate waste streams
Establish a framework for entities that own and operate shared infrastructure and regulate shared streams of energy, waste, water, etc.
50 | the carbon-free regions handbook industry the carbon-free regions handbook | 51 regions the carbon-free Global Spotlights Spotlights Global which EIP, pioneering an early | Created Tianjin (CHN) servesnow companies 10,000 to certification a voluntary | Created (ITA) Tuscany ecoparks industrial encourage for parks eco-industrial up two (IND) | Setting Gujarat and exchange resources available share to industries enterprises other with and by-products wastes
An International Framework for Eco-Industrial Parks Eco-Industrial for Framework An International Asian Handbook for Eco-Industrial Park Countries Development Niches to Strategic from Eco-Industrial Parks The Cases of China Mainstream: Development Integrated and Development Eco-Industrial Parks Italy Management Challenges: Findings from UNIDO’s Global Assessment of Eco-Industrial Parks Parks Assessment Global Eco-Industrial of UNIDO’s Countries and Emerging in Developing
Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources 18 industry Clean Ports and Airports Move to low-carbon fuels and advance infrastructure resilience in ports and airports
Set progressive goals and align regional stakeholders to provide low-carbon fuels to vessels and aircraft, develop cleaner energy infrastructure within the facilities, and catalyze the development of low-carbon fuels regionally. Support vehicles and processes for maintenance, fueling, and other activities that minimize process energy consumption and electrify loads where possible. Many ports and airports are in areas subject to extreme weather, making resilience necessary, but also creating the opportunity to serve as emergency response centers.
Action Documents Find action documents at rmi.org/carbonfreeregions
Memorandum of Understanding Template, Clean Sky 2, 2016
Catalonia’s Law 16/2017 establishing a carbon tax on heavily polluting freight and shipping vehicles (in Spanish)
52 | the carbon-free regions handbook industry the carbon-free regions handbook | 53 regions the carbon-free , and noise emissions in the aviation industry and in the aviation , and noise emissions x USA Biofuels Advanced from Articles in Aviation Industry the Seaport of and Regulation Privatization and Energy Commission's Seattle of Port Committee Sustainability launch microgrid San Diego of Port
cofunded a program “to develop tools and knowledge to to and knowledge develop tools “to a program cofunded higher quality, at faster, materials lightweight produce airports at fuel consumption reduce to less costs” and at £70 million Scottish the (GBR) | Established Scotland support to Fund Infrastructure Renewables National the offshore for in port infrastructure improvements wind sector Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources Global Spotlights Spotlights Global million a AUS$16 | Building (AUS) Queensland Oil Refining’s Southern plant at biofuels pilot advanced biofuels advanced provide to Gladstone plant at Yarwun use marine, and aviation military, for suitable of | Signed a memorandum South Holland (NLD) CO₂, help reduce 2 to Sky with Clean understanding NO Support policies that create market incentives incentives market create Support policies that and shipping, aviation for fuels low-carbon for and low-carbon fuel standards such as renewable fuel standards that measures and other microgrids Explore resilience power electrical increase Airlines and shipping companies are the ultimate the ultimate are companies Airlines and shipping they fuels, so low-carbon for end customers targets of setting be included in the process must fuels low-carbon and procuring Lack of long-term financial commitments commitments financial Lack of long-term will hinder supplier fuels low-carbon purchase to facilities in production investment Convene staff from a variety of ports, airports, airports, of ports, variety a from staff Convene air local/regional groups, airlines, industry trade NGOs, and fuel farms, quality regulators, when establishing fuel producers alternative targets carbon
Key Considerations Key
19 industry Clean Industrial Vehicles Adopt industrial vehicle-efficiency and clean-fuel requirements
Require cleaner fuels, including electrified solutions, for industrial vehicles in the state or region. This should include vehicles on industrial campuses, as well as vehicles being used in the field such as construction and farming vehicles. This recommendation is not high impact for all regions, and it is most relevant to regions with transport-heavy industries, such as open-pit mining.
Action Documents Find action documents at rmi.org/carbonfreeregions
Hong Kong’s Non-Road Mobile Machinery (NRMM) Resources
London Area Non-Road Mobile Machinery (NRMM) Practical Guide
California’s Off-Road Diesel-Fueled Fleets regulation
Key Considerations
For industries without much on-site transport, such as underground mining, this recommendation will probably only yield minor regional impacts
Begin with a focus on large-scale operations for maximum impact without constraining small businesses
Basing this requirement on efficiency standards allows industries more flexibilities in how to meet the requirement
54 | the carbon-free regions handbook industry the carbon-free regions handbook | 55 regions the carbon-free Summary of world’s engine and vehicle emission and vehicle engine Summary world’s of Used in Diesel Engines for Pathways Technology and Equipment Vehicles Non-Road
, Dieselnet , Dieselnet standards Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources Global Spotlights Spotlights Global for newregulations | Implemented (HKG) Hong Kong mobile machinery; non-road from emissions controlling a unique have must vehicle exempted or approved each with the regulation it complies that show label to a pilot (DEU) | Promoting North Rhine-Westphalia oils in vegetable the use of domestic for project the full machinery demonstrate agricultural to in reduction a significant of the machinery, suitability milk domestic to and a contribution gases, greenhouse production and meat an air quality (DEU) | Adopted Baden-Württemberg machinery certain for construction for ordinance stringent phases in more that municipalities 2019 2017 to from requirements land use
56 | the carbon-free regions handbook section
Land use issues present both a great threat and a great opportunity to climate goals. Some 24% of global greenhouse gas emissions come from agriculture, forestry, and other land use, but this sector can also offset this impact by 20% by removing carbon from the atmosphere. Land use is best approached at the state, provincial, and regional government scale. Cities miss most of the rural impacts associated with land use. Land use matters also tend to cross subnational jurisdictions, making Land Use regional solutions necessary. These 20 Sustainable Land Management...... 58 21 Open Space Conservation...... 60 recommendations can also provide a 22 Agricultural Methane Capture...... 62 variety of benefits for preserving and 23 Regenerative Agriculture...... 64 promoting biodiversity. 20 land use Sustainable Land Management Reduce deforestation and degradation; expand the area of land under sustainable management
Promote policies that create, conserve, and expand high-carbon landscapes like natural grasslands, forests, peatlands, mangroves, and wetlands, and strengthen and enforce laws that combat deforestation.
Action Documents Find action documents at rmi.org/carbonfreeregions
The Punjab Forest (Amendment) Act 2016
Oregon 2017 ORS 526.780: Agreements for forestry carbon offsets and2017 ORS 526.786: Rules relating to forestry carbon offsets
National Conference of State Legislatures: State Forest Carbon Incentives and Policies
Yucatán Peninsula Framework Agreement on Sustainability for 2030
The Brazilian state of Mato Grosso’s “Produce, Conserve, Include” sustainable land use plan—the largest claimed effort at the subnational level (in Portuguese) Strategy document and website with documentation
58 | the carbon-free regions handbook land use
the carbon-free regions handbook | 59 regions the carbon-free “The Department of Caquetá promotes of the restoration ecosystems in order to improve the capacity for and resilience carbon increase sequestration.” Governor, Álvarez, —Álvaro Pacheco Department of Caquetá, Colombia Global Spotlights Spotlights Global strategy an ambitious | Created (BRA) Grosso Mato a despite 40 partners, and targets with 21 performance $50 million secured and setting, stakeholder complicated deforestation reduce support to finance in climate forestry sustainable | Promotes Punjab (PAK) land forest leasing by 134,995 acres over investments another to be further extended can which 15 years, for fulfill the needs of can that plantations raise to 15 years, industry the wood-based offsets carbon forest | Authorized (USA) Oregon forest and specific reforestation, afforestation, for practices management , 2018 Greenberg Center for for Center Greenberg , The Express Tribune Sustainable Development Options and Land-Use and Land-Use Options Development Sustainable Change Climate Enhance to Based Alternatives in the Capacities and Adaptation Mitigation Enhancing While Amazon Colombian and Peruvian Livelihoods and Local Services Ecosystem Pathways to a Low-Carbon Economy: Version 2 of Version Economy: a Low-Carbon to Pathways , Cost Curve Gas Abatement the Global Greenhouse 2013, Chapter September McKinsey Company, and 116–122 pp. 8.9: “Forestry,” , database Force Task and Forests Climate Governors’ reduce 200+ laws and policies to home to and partnerships and 150+ ongoing deforestation initiatives ongoing National and Policies, Carbon Incentives Forest State Legislatures State of Conference Change: Fight Climate to Deforestation Reducing a CFR Workshop Insights from fight to is taking Pakistan initiatives forestry “Four ,” change climate and Low REDD+ to Approaches Jurisdictional , and Prospects Emissions Development: Progress 2018 Institute, World Resources Positive Disruption: Limiting Global Temperature Temperature Limiting Global Disruption: Positive Institute Mountain 2 Cº, Rocky Below Well Rise to Tropical Forest Alliance 2020 partner mapping initiative 2020 partner Alliance Forest Tropical Geoeconomic Studies, 2015 Studies, Geoeconomic
Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources
Assess food security impacts of converting of converting Assess security impacts food grassland and/or forest land to agricultural expensive— and often is complex Reforestation the survivalof the trees both for is key location carbon sink as a of the project and the efficacy Promote forest-products markets that drive forest forest drive that markets forest-products Promote management and enhanced expansion be to carbon sequester that projects forestry Allow offsets carbon eligible for Give preferential treatment to landowners landowners to treatment preferential Give in management forestry in sustainable engaged exemptions such as tax taxes, property to regards rates flat or low, Provide financial assistance to landowners for for landowners to financial assistance Provide plans and for development of management and afforestation, including reforestation practices thinning and disaster as responsible as well Engage indigenous communities in land communities indigenous Engage and planning programs management strengthening through deforestation Avoid for assistance technical providing governance, surveying and developing and monitoring, forest forest in and public support for capacity local
Key Considerations Key
management conservation 21 land use Open Space Conservation Preserve and conserve forests and other open spaces to support carbon sequestration
Preserve and conserve forests, grasslands, and other open space by identifying important natural resources, using local ordinances and state laws to protect land, and acquiring critical open space that can sequester carbon.
Action Documents Find action documents at rmi.org/carbonfreeregions
Acre, Brazil’s State Environmental Service Incentive System Law No. 2,318 (in Portuguese)
New Jersey’s Green Acres Program regulations and Garden State Preservation Trust Act
60 | the carbon-free regions handbook land use the carbon-free regions handbook | 61 regions the carbon-free The High Carbon Stock forestry and biodiversity and biodiversity forestry The High Carbon Stock 2017 Fund, , World Wildlife Forest the Atlantic of State Preservation Open Space New Jersey in REDD+, Climate Leader Subnational Brazil: Acre, 2013 Focus, study zoning San Martin, Peru, Preserving Open Space, for and Techniques Tools Commission, 2010 River Jordan
approach Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources Global Spotlights Spotlights Global program sequestration | Has a carbon (BRA) Acre environmental through conservation promotes that of small-scale monitoring improved compliance, through degradation and forest deforestation of and promotion advancements, technological and the agriculture in both activities sustainable sectors forestry half a million acres over | Protected (USA) New Jersey revenues sales tax aside state setting by of open space $1 billion in and issuing up to 10 years, for year each revenues supplement the sales tax to bond proceeds the same period over promote must (ARG) | Every province Argentina Some areas. conservation and establish zoning forest for and financial incentives tax provide provinces areas protect to owners private Expanding land conservation could potentially potentially could conservation land Expanding competition land invoke Clarify land rights and land tenure and land tenure Clarify land rights conservation or farmland Develop an open space stocks, lands with high-carbon prioritizes plan that such as peatlands and farmland for easements conservation Create areas of urban the margins at forests such development design tools flexible Employ design, clustering, subdivision as conservation zoning and performance bond or open space open space a local Establish land acquisition to dedicated sales tax
Key Considerations Key
22 land use Agricultural Methane Capture Capture methane from livestock waste
Promote methane capture from livestock waste through financial incentives and improved biogas infrastructure, and by strengthening the market for biogas system products.
Action Documents Find action documents at rmi.org/carbonfreeregions
New York Methane Reduction Plan, 2017
California’s legislation that created the Short-Lived Climate Pollutant Reduction Strategy
“Reducing the methane emissions generated by small- and medium-sized swine farms has high benefits for sustainable development and allows us to accelerate progress toward the decarbonization of our agricultural sector.”
—Eduardo Batllori Sampedro, Minister of Urban Development and Environment, Yucatan, Mexico
62 | the carbon-free regions handbook land use the carbon-free regions handbook | 63 regions the carbon-free , pollutants climate short-lived reduce Act to Time to (in multiple Air Coalition and Clean Climate to Actions Voluntary Roadmap: Biogas Opportunities Energy Emissions and Increase Methane Reduce initiative agriculture Air Coalition’s and Clean Climate in Small and Medium Swine Biodigestors Case Study:
languages) DOE, 2014 US EPA, US , USDA, Independence Government State , Yucatan Farms Global Spotlights Spotlights Global and promotes trains, (MEX) | Encourages, Yucatan currently are There farms. on swine systems biodigestor in 50 municipalities 150 projects methane agricultural | Reduces (USA) New York practices, management farm emissions through and soil carbon and reporting, monitoring on farms sequestration and companies construction | Trained Punjab (PAK) and use dairy construction, on the design, local farmers plants of biogas Resources Recommended rmi.org/carbonfreeregions at Find resources Aerial imaging can quickly identify large sources sources quickly identify large Aerial imaging can quickly be targeted which can leakage, of methane and mitigated Provide incentives to farmers to install biogas systems biogas install to farmers to incentives Provide Classify methane gas as a renewable energy as a renewable gas Classify methane the ability to owners livestock allow to source energy credits renewable acquire for opportunities and encourage Promote of and the efficient use industry innovation and facilities infrastructure existing products system biogas for markets Strengthen and soil fiber, such as nutrient recovery, Work with stakeholders to overcome barriers to to barriers overcome to stakeholders Work with grid connection of biomethane, pipeline injection alternative best-use or another electricity, for
Key Considerations Key amendments
23 land use Regenerative Agriculture Expand use of regenerative agriculture to increase carbon sequestration
Provide education, training, and incentives to enable farmers and ranchers to transition to new, more sustainable forms of agriculture and land management that help sequester carbon.
Action Documents Find action documents at rmi.org/carbonfreeregions
Kerala State Environment Policy, 2009
Kerala Agricultural Development Policy
64 | the carbon-free regions handbook land use the carbon-free regions handbook | 65 regions the carbon-free Global Spotlights Spotlights Global to growers all agricultural (IND) | Requires Kerala phased approach a through 2020 by organically grow land of 10% of the cultivable a minimum (converting includes seed every that year) organic entirely into building capacity groups, farming organic villages, channels for and development of diverse farmers, for produce of organic marketing to and efforts training | Provides (MEX) Quarétaro more deliver to farmers among family synergies create agriculture sustainable dryland irrigated and Andalusia (ESP) | Promotes harmonize to orchards and olive crops herbaceous and environmental conservation with production food protection winter 90% of its roughly | Transitioned (AUS) Australia agriculture conservation to crops 4 per 1000 initiative ,” in Agriculture Gas Mitigation “Greenhouse B 363 Society of the Royal Transaction Philosophical 780–813 (2007): pp. (AFOLU),” Land Use and Other Forestry “Agriculture, 2014: Mitigation of Climate Change Climate the III to Group Change. Contribution of Working Report of the Intergovernmental Fifth Assessment Change, 2014 on Climate Panel Global Temperature Disruption: Limiting Positive Institute Mountain 2 Cº, Rocky Below Well Rise to and Strategy Policy, Farming Organic State Kerala Plan Action Regenerative Organic Agriculture and Climate and Climate Agriculture Organic Regenerative Global Solution to Change: A Down-to-Earth
Institute , Rodale Warming Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources Promote the production of biochar and create of biochar and create the production Promote existing in methodologies offset biochar carbon registries market voluntary carbon Some countries’ economies rely on agricultural agricultural on rely economies Some countries’ on conventional heavily based are that products practices agricultural a point of saturation eventually reach Soil can absorb carbon no longer beyond which it can Work for the opening of carbon markets to new to markets the opening of carbon Work for and agroforestry such as agriculture sectors Incentivize agricultural practices that increase the increase that practices agricultural Incentivize of biomass and soil and improve content carbon the use of the soil, including health the long-term and rotation, crop compost, crops, of cover tillage reduced Provide funding for research, development, and research, funding for Provide on sustainable of information dissemination practices agriculture and advisors farmers for programs up training Set organic development on improving on agricultural levels in soil matter
Key Considerations Key
waste
66 | the carbon-free regions handbook section
Waste management is part of the basic infrastructure of a community. How waste is managed has huge implications on local health, aesthetics, and economics. Waste can create health problems, release methane into the atmosphere, and increase pollution when not managed properly. Waste management usually extends across municipal boundaries, making it an important topic for regional governments to address. The recommendations in this section can reduce greenhouse gases and create Waste economic opportunities. 24 Organic Waste Diversion...... 68 25 Open Burn Ban...... 70 26 Waste Energy Capture...... 72 24 waste Organic Waste Diversion Divert all organic waste from landfills
Develop policies and programs to divert organic waste from landfills, including separate collection requirements, education campaigns, financial incentives for food redistribution, and disincentives for generating food waste.
Action Documents Find action documents at rmi.org/carbonfreeregions
Wales Waste Measure 2010
Municipal Sector Plan Part 1: Towards Zero Waste One Wales: One Planet
Vermont Universal Recycling Law Act 148
“Wales waste strategies have been built around sustainable development, now bolstered by our ground-breaking Well- being of Future Generations Act. Wales is leading by example.”
—Lesley Griffiths, Cabinet Secretary for Energy, Planning, and Rural Affairs, Wales, UK
68 | the carbon-free regions handbook waste the carbon-free regions handbook | 69 regions the carbon-free Global Spotlights Spotlights Global a including facilities, waste-sorting | Created (DZA) Oran zero-waste a model create is to plant. Goal composting (province) wilaya from weekly is collected waste (GBR) | Food Wales digestion anaerobic used in five households, and is grid the national energy for both producing facilities, the nutrient content improve used to and a digestate a zero-waste become to is Goal farms. of soil on local 2050 by nation source-separated (BEL) | Mandates Flanders residential per capita for targets and sets collection, and maximum home composting, production, waste and waste of unsorted landfilling bans residuals; has a pay-as-you- recovery, for suitable waste separated home composting encourages and policy, throw energy create to digesters biogas (PHL) | Created Bicol waste organic diverted from be waste all organic that | Requires (USA) Vermont 2020 landfill disposal by from diverted GAIA, 2012 GAIA, , waste by country by waste On the Road to Zero Waste: Successes and Lessons and Lessons Successes Waste: Zero to On the Road the World Around From , 20 Percent by Waste Food US Reduce to A Roadmap 2016 ReFED, Finder Policy Waste Food US ReFED for Ideas the Landfill: Policy Out of Food Keeping Law Law School Food , Harvard and Localities States 2016 Clinic, and Policy One Planet One Wales, Waste: Zero Towards 2015–2020 Strategy Waste South Australia’s Policy Forward: Waste Food Moving , in Massachusetts Next Steps for Recommendations 2017 Clinic, Law and Policy Law School Food Harvard on Paper Council White Policy Food Massachusetts , 2017 Reduction Waste Food on organic with visualizations Atlas Waste of percentage Global Food Waste Management: An Implementation Waste Global Food Association and C40 Cities, World Biogas Guide for 2018 Group, Leadership Cities Climate
Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources Extracting energy from compost can be added at a be added at can compost energy from Extracting plant is operational a compost once stage later Diverting to animal feed requires close regulation close regulation requires animal feed to Diverting types of food on what legislation and stringent used are waste Some initiatives may require strict monitoring to to monitoring strict may require Some initiatives dumping illegal prevent is these projects for steps critical One of the most sorting on waste the population training Implement “pay-as-you-throw” schemes Implement “pay-as-you-throw” the for waste of food the producers charge that on the based they generate disposal of the waste weight/volume waste’s Require businesses that generate large quantities large generate businesses that Require and the origin, volume, report to waste of food of such waste disposal methods for incentives fiscal and credits tax Provide food of surplus donation Require separate waste-collection programs programs waste-collection separate Require then be composted, which can waste, food for animal feed or used as digested, anaerobically
Key Considerations Key
25 waste Open Burn Ban Ban open burning of municipal and agricultural waste
Ban open burning of municipal waste and support the ban with education and upgrading waste collection, sorting, and treatment. Ban burning of agricultural waste and support the ban with education and financing for sustainable farming techniques.
Action Documents Find action documents at rmi.org/carbonfreeregions
Solid Waste Law of the State of Colima, Article 25 banning open burning (in Spanish)
Guidelines for the Implementation of the ASEAN Policy on Zero Burning, The Association of Southeast Asian Nations Secretariat, 2003
Air Pollution Control (Open Burning) Regulation, Hong Kong
Laws of Malaysia, Act 127, Environmental Quality Act
70 | the carbon-free regions handbook waste the carbon-free regions handbook | 71 regions the carbon-free Fire in the Fields: Moving Beyond the Damage of Open the Damage Beyond in the Fields: Moving Fire Burning on Communities, Soil, and the Agricultural A Guide to the Air Pollution Control (Open Burning) Control the Air Pollution A Guide to , A Global Health Disaster Open Burning of Waste: 2016 Action, of Climate R20 Regions website Open Burning Project Assessment Black Carbon and of UNEP Integrated Ozone Tropospheric
2015 Air Coalition, & Clean , Climate Cryosphere , Hong Kong , Hong Kong Regulation Global Spotlights Spotlights Global burning, open a law banning to | In addition Colima (MEX) coordinate to municipalities five organized the state support and with educational burning, ending waste disposal alternative equipment for providing ban implement a national (IND) | To Pradesh Uttar programs educational created on open burning, has build to resources other and harnessed farmers for open burns to as an alternative infrastructure composting Resources Recommended rmi.org/carbonfreeregions at Find resources | Prohibits open burning of | Prohibits (HKG) Hong Kong of metal the salvage and for tires, waste, construction A ban on the use of fire for land clearing can raise raise can land clearing for on the use of fire A ban for their land prepare to small farmers for the costs it pest-free keep planting and to Highly efficient incinerators are cost-prohibitive cost-prohibitive are incinerators Highly efficient regions many low-income for Conduct educational efforts that focus on the that efforts educational Conduct waste of burning effects health disastrous reduce services to collection waste Improve burning waste residential sorting and waste upgrade financing to Provide to open dumpsites and convert facilities treatment landfills engineered on assistance and technical training Provide as no-till such practices agricultural sustainable slash-and-burn farming decrease to farming require that places for Consider exceptions restoration ecosystem burns for controlled
Key Considerations Key
26 waste Waste Energy Capture Reduce methane emissions and promote energy capture from landfills
Require the installation and proper operation of gas collection and control systems at active, inactive, and closed municipal solid waste landfills. Promote gas-to- energy recovery to produce steam or electricity.
Action Documents Find action documents at rmi.org/carbonfreeregions
Navajo Nation Long Range Comprehensive Solid Waste Management Plan
Ontario guidelines on the regulatory and approval requirements for landfill gas
Final Landfill Methane Control Measure, California Air Resources Board, 2010
72 | the carbon-free regions handbook waste the carbon-free regions handbook | 73 regions the carbon-free Global Spotlights Spotlights Global modernize to operators | Requires (USA) Nation Navajo gas reduce to practices best and adopt their equipment and venting reduce and capture, gas increase leaks, on vented royalties pay to companies flaring; requires gas and flared energy produce to a facility | Created (HKG) Hong Kong handle to power own its providing sludge, sewage from the waste and collection landfill gas (CAN) | Requires Ontario 1.5 million than larger landfills flaring or use for cubic meters any properties tax property from | Exempts (USA) Iowa or methane collect to gas, to waste convert used to collect or to energy, to the gas convert to gases, other these purposes for waste Landfill gas capture is never 100% efficient, capture Landfill gas to will escape some methane that meaning the atmosphere Strict regulations for gas-to-energy projects projects gas-to-energy for regulations Strict afford can’t some landfills that shut down could the technology Require a final cap on landfill sites once they once on landfill sites final cap a Require closed are energy produced pricing for premium Provide tariffs including feed-in methane, landfill from process, permitting fast-tracked a tax credits, Offer assistance grid, and the electrical to priority access producing landfill owners to with interconnection landfill gas energy from renewable Financing Landfill Gas Projects in Developing in Developing Financing Landfill Gas Projects and resources tools Air Coalition, and Clean Climate initiative and waste Implementation Guidance Document: the Guidance For Implementation Emissions from Methane Reduce to Regulation Air , California Landfills Municipal Solar Waste 2016 Board, Resources Handbook, Development Project Gas Energy Landfill 2017 Agency, Protection Environmental US
, Claire Markgraf and Silpa Kaza, 2016 Kaza, and Silpa Markgraf Countries, Claire
Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources Key Considerations Key
finance
74 | the carbon-free regions handbook section
Finance cuts across all of the sectors covered in this book, and is a key enabler for all of the recommendations. Regional governments operate at a scale that lends itself well to organizing and delivering financial solutions, and realizing scale benefits. These finance recommendations are highly variable, with solutions that are very dependent on the local economic and regulatory contexts. Each recommendation is portrayed as a broad strategy, with more Finance detailed information on specific 27 Capital Availability...... 76 28 First-Cost Solutions...... 78 opportunities. 29 Market Incentives...... 80 30 Reduced Procurement Costs...... 82 27 finance Solution Options 1. Public-Private Partnerships/Green Banks The efficient use of limited public resources can make Recommended Resources projects more attractive to the private sector, leveraging Find resources at rmi.org/carbonfreeregions Capital Availability much larger amounts of private investment for low- Make capital available to finance projects carbon solutions. Judiciously using public resources Green Bank Network can help overcome market barriers and increase market Invest capital into the infrastructure and assets of a activity by crowding in private sources of capital. A good Coalition for Green Capital community. Sources of capital must be secured to example of public-private partnerships is green make those investments possible and to realize investment banks (GIBs). GIBs are public-purpose Founding Charter for Armenia’s government-created the wide range of benefits that those investments finance institutions designed to facilitate private energy financing NGO and general information provide to the community. investment in local low-carbon, climate-resilient (in Armenian) projects by focusing on gaps in the market. They can be used to support small, decentralized efforts or major Queensland infrastructure fund infrastructure projects. Some entities use a dedicated tax for specific projects to raise infrastructure funds. Armenian legislation for green funds
Context NY Green Bank Best for places with strong capital markets Action Documents Find action documents at rmi.org/carbonfreeregions
Bulgaria program overview and details
Connecticut Public Act 11-80 creating the green bank and the bank’s legislative mandate
Rhode Island legislation creating an infrastructure fund Global Spotlights Armenia (ARM) North Brabant (NLD) Bulgaria (BGR) New York (USA)
76 | the carbon-free regions handbook finance project facilitator programs programs facilitator project the carbon-free regions handbook | 77 regions the carbon-free Energy and waste Energy R20’s Africa for Fund Climate Subnational Bank Investment European funds Advisory Facility Infrastructure Public-Private and resources
Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources 4. Preinvestment Preparation Preinvestment 4. to improve need support often governments Local to plans in order design of project the financial funds Multilateral investments. capital attract developing countries. to provided sometimes are leverage to be financed services can Preinvestment investments. larger-scale Context for specific funds with though often All regions, countries low-income Documents Action replicable not are action taking for documents In this case, Spotlight Global a feasibility financing for Djiboua (CIV) | Secured Loh and sorting of five support the creation to study stations composting
Climate Bonds Standard Climate in France review Bond project Green How to Issue a Green Muni Bond Issue a Green to How Bonds playbook and resources Green Bond Principles 2017 Green Bond program Green Quebec’s of review External
Context capacity with bonding countries Only for Document Action rmi.org/carbonfreeregions at documents Find action Spotlights Global La Rioja (ARG) (HKG) Hong Kong Queensland (AUS) Resources Recommended rmi.org/carbonfreeregions at Find resources 3. Green Bonds Green 3. Green bonds are regular government or corporate or corporate government regular bonds are Green use for earmarked of which are proceeds bonds, the environmental positive have that projects only for and base the investor These bonds broaden impacts. environmental for used they are ensure to tracked are be issued bond can a revenue As a variation, projects. income with a dedicated projects infrastructure against utility services. such as stream, Overview and searchable database Overview and searchable Draft legislation to allow social investment to allow legislation Draft
Recommended Resource Recommended rmi.org/carbonfreeregions at Find resources | Refined its laws to facilitate social social facilitate laws to its (CAN) | Refined Ontario investing Global Spotlight Global Action Document Action rmi.org/carbonfreeregions at documents Find action 2. Concessionary Capital Concessionary 2. investment provide organizations Some philanthropic Because (PRIs). investments program-related for dollars missions, they aligned with can are the investments Some socially terms. favorable more usually offer similar solutions. firms offer capital minded venture 28 finance Solution Options 1. Energy Savings Performance Contracts 2. Total Cost of Ownership Procurement Reform Energy savings performance contracts (ESPCs) are Incorporating a total cost of ownership policy for the contracts with a private energy services company to government and within the community will drive First-Cost Solutions evaluate and deliver cost-effective energy upgrades to procurement decisions that include operating and Develop financing mechanisms to reduce/ a facility and pay for those upgrades with the energy maintenance costs. This approach supports greater eliminate first-cost concerns savings, providing a guaranteed savings and the energy efficiency, which may be discouraged by status- private financing to make the upgrades. Regions can quo procurement policies that rely on low purchase costs. Develop financing solutions that can cover the organize programs or pass legislation to allow and up-front costs for carbon-reduction actions that encourage ESPCs. Action Documents will create financial savings in the long term. These Find action documents at rmi.org/carbonfreeregions solutions will unlock more action, remove financial Action Documents burdens associated with new requirements, and Find action documents at rmi.org/carbonfreeregions Scotland’s Procurement Strategy deliver greater financial benefits to those private stakeholders. The government’s role in these Plan of Energy and Climate Change 2012–2020, Massachusetts’ Environmental Purchasing Executive solutions can vary, with some requiring enabling which includes provisions for energy contracting Order 515 legislation (e.g., property assessed clean energy with guarantees (in Catalan) programs) and others that are newer innovations New South Wales’s procurement directive needing support and introduction to the market Clean Energy Investment Program (e.g., green leases). Global Spotlights Sample RFPs and other resources Scotland (GBR) Catalonia (ESP) Global Spotlights New South Wales (AUS) Catalonia (ESP) New Jersey (USA) Recommended Resources Upper Austria (AUT) Find resources at rmi.org/carbonfreeregions
Recommended Resources Various low-carbon best practice tenders Find resources at rmi.org/carbonfreeregions National Association of State Procurement Officials All US state laws for ESPCs Green Purchasing Guide
Practices and Opportunities for Energy Performance Local Government Green Procurement Guide Contracting in the Public Sector in EU Member States Guidance for Leadership in Sustainable Purchasing 2.0 Energy Savings Performance Contract Toolkit Institute for Public Procurement’s white paper on Energy Performance Contracting: Modernising total cost of ownership Buildings with Guarantees Introduction to total cost ownership Report on the Catalan and Spanish EPC Markets
78 | the carbon-free regions handbook finance
the carbon-free regions handbook | 79 regions the carbon-free The American Council for an Energy-Efficient an Energy-Efficient Council for The American Efficiency On-Bill Energy Economy’s in the UK program Deal Green List of all US state legislation for on-bill financing for legislation state all US of List and Local the State Design Guidelines from Program Network EfficiencyEnergy Action
programs Financing from public or private sources can be can sources public or private from Financing creating utility, the through bill-payers to provided see the who can customers, for option a convenient all their energy-related and pay savings on their bills also provide can approach This one place. in costs encourage utilities to for a viable business model in their their support of energy improvements service territories. 5. On-Bill Financing On-Bill 5. Global Spotlights Global (GBR) Scotland England, and Wales, (USA) New York (USA) Minnesota Resources Recommended rmi.org/carbonfreeregions at Find resources Action Documents Action rmi.org/carbonfreeregions at documents Find action
resources and other data, laws, market PACE US and PACE Residential Guidelines for Best Practice Leadership PACE in Commercial Lessons Environmental Environmental called legislation, Australian Agreements Upgrade PACE. for protections consumer Updated bill CA Assembly bill and CA Senate
Property assessed clean energy (PACE) programs allow allow programs energy (PACE) assessed clean Property energy-efficiency for funds secure to building owners their property through them back and pay upgrades, of a public-private because assessments tax be provided funds can is that The result partnership. or than personal rather values estate on real based the is done through repayment credit, corporate with stays mechanism, and the financing tax existing with the individual or than moving the building rather and states, 20 US in over is active PACE company. have states in only three programs PACE residential are instruments PACE-like a $5 billion market. unlocked China and Europe. like being developed in places
Find resources at rmi.org/carbonfreeregions at Find resources Action Documents Action rmi.org/carbonfreeregions at documents Find action Spotlights Global (CAN) Ontario (AUS) Victoria Florida (USA) Resources Recommended 4. Property Assessed Clean Energy Energy Clean Assessed Property 4. Probate & Property
: Volume 30, No. 02 30, No. : Volume Trends in Green Leasing Leasing in Green Sobelsohn, “Trends J. Richard ,” Today the Early Days to - From Landlord Tenant Energy Partnership Energy Tenant Landlord , Buildings Energy Net-Zero Leasing for Best Practices Institute Mountain Rocky Green Lease Library Lease Green with best practice legal legal practice with best Toolkit Leasing UK Green
Magazine
language Recommended Resources Recommended rmi.org/carbonfreeregions at Find resources Global Spotlights Global (FRA) France (GBR) Kingdom United (AUS) Australia Action Document Action rmi.org/carbonfreeregions at documents Find action 3. Green Leasing Green 3. Leasing arrangements typically create a “split “split a create typically arrangements Leasing little have owners building where incentive” capital in energy-related invest to incentive the utility pay the tenants because improvements energy use. With lower the bills and benefit from (or energy-aligned tenants leasing), leasing green of and the benefits the costs share and landlords building include which can energy upgrades, site generation. renewable efficiency and 29 finance Solution Options 1. Carbon Tax/Greenhouse Gas Trading Support emissions reductions by putting a price on carbon—a carbon tax or fee—which will drive down emissions as polluting becomes more expensive. Market Incentives Alternatively, support setting emissions reductions Develop financing solutions to increase the targets, capping the total amount of allowable attractiveness of energy investments emissions, and allowing the market to determine the price with a greenhouse gas cap-and-trade Market structures can help stimulate widespread policy. By putting an economic cost on carbon and action in the private sector. Governments can play creating a market for carbon-saving endeavors, a key role in supporting or even structuring markets governments can create market conditions that to unlock that potential. These incentives help support carbon-saving solutions. accelerate adoption and overcome status quo inertia. Action Documents Find action documents at rmi.org/carbonfreeregions
British Columbia carbon tax legislation
Alberta Bill 20 Climate Leadership Implementation Act (includes a carbon levy)
State statutes and legislation for members of the Regional Greenhouse Gas Initiative’s carbon trading policy Global Spotlights Guangdong (CHN) | Ireland (IRL) Zimbabwe (ZWE) | California (USA) European Union (EU) Recommended Resources Find resources at rmi.org/carbonfreeregions
Carbon Tax Center
Zimbabwe’s Carbon Tax
Japan’s Carbon Tax
World Bank/Ecofys State of Carbon Pricing 2017
80 | the carbon-free regions handbook finance
the carbon-free regions handbook | 81 regions the carbon-free
Massachusetts law creating a state economic economic a state law creating Massachusetts technology clean for office development direct provide to program North Rhine-Westphalia ) (in German purchasers to incentives Association Cluster Cleantech Global Network Cleantech International
Action Documents Action rmi.org/carbonfreeregions at documents Find action Spotlights Global Henan (CHN) (DEU) North Rhine-Westphalia (USA) North Carolina Resources Recommended rmi.org/carbonfreeregions at Find resources 3. Incentives for Clean Technology Companies Technology Clean for Incentives 3. Create incentives for clean technology companies, technology companies, clean for incentives Create incentives, tax development grants, economic including programs. capital venture and public Westphalia, Germany of North-Rhine State and Energy, Digitalization, Pinkwart, Minister for Economic Affairs, Innovation, Dr. Andreas —Prof. “Our goal in North-Rhine Westphalia is to become one of the most climate friendly one of the most climate is to become in North-Rhine Westphalia “Our goal as well as innovation we foster in the world. Therefore, industrial regions and our science community.” industry, between start-ups, traditional cooperation
Africa Incentive Survey Incentive Africa Taxes and incentives for renewable energy renewable for incentives and Taxes Santa Cruz tax exemption and credits for wind and for and credits exemption Cruz tax Santa (and other policies) (and other credit solar tax Pradesh Madhya
Provide tax credits for projects that include renewable include renewable that projects for credits tax Provide can Tax credits energy or energy-efficiency measures. taxes, including property areas, in several be applied and others. taxes, value-add tax, income ) solar (in Spanish Find resources at rmi.org/carbonfreeregions at Find resources Recommended Resources Recommended Global Spotlights Global (IND) Pradesh Madya (ARG) Cruz Santa Action Documents Action rmi.org/carbonfreeregions at documents Find action 2. Investment Tax Credits Tax Investment 2. 30 finance Solution Options 1. Reverse Auctions for Procurement 2. Aggregate Purchasing Programs In a reverse auction, the sellers are competing to Organize aggregate (or bulk) purchasing opportunities provide the lowest price, as opposed to a traditional for local governments and private businesses or Reduced Procurement auction where buyers are competing for a higher price. citizens to secure lower prices and create a time-bound Using this approach for energy-related procurements trigger to spur action. These can be direct equipment Costs can effectively secure lower costs, as long as other purchases or power purchase agreements. Reduce procurement costs through regional quality requirements are clearly defined. collaboration structures Context Action Documents Aggregation of power purchase agreement is best done Regional governments are well positioned to Find action documents at rmi.org/carbonfreeregions in liberalized markets organize programs that will lower the cost to procure upgrades and assets, such as solar Gujarat Request for Selection Action Document installations, electric vehicles, and air-source Find action documents at rmi.org/carbonfreeregions heat pumps. By organizing these programs at Australian Capital Region Feed-In Tariff Act, which scale, greater cost reductions can be achieved for creates provisions for reverse auctions US state statutes for power purchase agreements constituents across the region. Global Spotlights Global Spotlights Gujarat (IND) Zhejiang (CHN) Australian Capital Region (AUS) Michigan (USA) São Paulo (BRA) Recommended Resource Recommended Resources Find resources at rmi.org/carbonfreeregions Find resources at rmi.org/carbonfreeregions Go Green Purchasing for US local governments Overview and evaluations of ACT’s reverse auctions
Case study of São Paulo program
82 | the carbon-free regions handbook Next Steps
General Resources...... 84 Version and Evolution...... 84 The Path Forward...... 85 Conclusion...... 86 next steps
General Resources Version and Evolution
The Under2 Coalition This is Version 1 of The Carbon-Free Regions Handbook. This space is evolving fast, and we are collectively R20 Regions of Climate Action learning, innovating, and proving more solutions every year. This book represents a snapshot of the high- Digital Environmental Legislative Handbook, USC impact, no-regrets actions of today (2018), but these Schwarzenegger Institute are just the starting points. We have surely missed some great examples throughout the world, and EU’s Regional Clusters in Energy Planning welcome recommendations and suggestions, which we will endeavor to share with the community. National Conference of State Legislatures’ energy Although we focused this handbook on proven bill database solutions, forward-looking states, provinces, and regions may pioneer emerging practices so that they America’s Pledge on Climate Change can become proven strategies for others. We invite regional governments to reach out to us as they World Resource Institute’s ClimateWatch implement high-impact programs like these. With enough new information and interest, we may produce How Improved Land Use Can Contribute to the 1.5°C future versions updated with new insights. Goal of the Paris Agreement, working paper prepared by Climate Focus and the International Institute for Applied Systems Analysis
McKinsey and Company’s Decarbonization of Industrial Sectors: The Next Frontier
Links to these resources, as well as to other sources of information found throughout the book, are available online and in the PDF version of this handbook, available at rmi.org/carbonfreeregions.
84 | the carbon-free regions handbook next steps the carbon-free regions handbook | 85 regions the carbon-free 4. Take Action 4. Take 5. Share the Results 5. Share 3. Engage Stakeholders The Path Forward Path The 2. Connect with Regional Networks 2. Connect with Regional 1. Identify Relevant Recommendations, Relevant Recommendations, 1. Identify Based on Local Conditions and Emission Sources Conditions and Emission Based on Local next steps
Conclusion
The time to act is now. Fortunately, momentum is Dr. Martin Luther King, Jr. spoke with long-term vision when addressing the civil rights of African- building around the world. Renewable energy capacity Americans. Climate change threatens to create a massive new civil rights problem. Given this is growing by leaps and bounds, and more and more new, additional threat, Dr. King’s warning applies to the issue of climate change as well. governments are passing laws to address climate change. And you don’t have to wait for your national government to take action—states, provinces, and regions can lead the action and make the changes the world desperately needs. The actions in this handbook “We are now faced with the fact that are ready to launch now; don’t wait for someone else to lead the way. tomorrow is today. We are confronted Join the exciting movement of regions around the world that are taking steps to not only solve climate with the fierce urgency of now.… issues, but also solve energy, employment, resiliency, equity, and health issues, all at the same time. We have Procrastination is still the thief of much at risk, but the solutions aren’t just about doing the right thing. They also create a path to a vibrant, thriving future that we should pursue regardless of the time ... Over the bleached bones and threat of climate change. jumbled residue of numerous We thank you for your interest in learning how your community can be carbon-free, and for taking action to make it possible. Please let us know what you do in this civilizations are written the pathetic space and how you’re driving change. We look forward to featuring your work in the future. words: ‘Too late.’ There is an invisible book of life that faithfully records our vigilance or our neglect.”
—Dr. Martin Luther King, Jr.
86 | the carbon-free regions handbook next steps the carbon-free regions handbook | 87 regions the carbon-free The Carbon-Free City Handbook The Carbon-Free this guidebook, which to companion is an important City Handbook The Carbon-Free 22 It offers jurisdiction. with cities within their should share governments regional It includes the world. around cities for recommendations transformational no-regrets, and action immediate help cities take to and additional resources documents action impact. to concept from move rmi.org/carbonfreecities Find it at: The Carbon-Free Regions Handbook Regions The Carbon-Free handbook, of the entire and other copy digital free a documents, Find all of the action rmi.org/carbonfreeregions at recommendation each for content M OUN KY T C A I O N
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