Conference: Post-Kyoto Strategic Opportunities:
Business and Global Climate Change

TITLE: Strategic Opportunities Post-Kyoto: Business and Global Climate Change
DATE: April 2-3, 1998
SITE: Yale University, New Haven, Connecticut
CO-SPONSORS: US Environmental Protection Agency, Yale University School of Forestry and Environmental Studies

The first day of this conference, organized by the Climate Institute and the Yale School of Forestry and Environmental Studies, focused specifically on strategic opportunities for the energy, insurance, and defense industries post-Kyoto. Participation was limited to a select group of high-level executives from those sectors. Interest in the Kyoto Conference on the part of the New England business community enabled the Yale Industrial and Environmental Management Program to draw together about 50 senior business leaders from the energy, defense, and insurance sectors to discuss strategic business opportunities in light of the climate change negotiations. The second day continued discussions of these themes but was open to students and others in the community.

The morning plenary session on the first day provided an overview of climate change science and impacts for business executives from all three target industries. In a speech on the science and economics of climate change, Professor William Nordhaus, Economics professor at Yale University, emphasized the role of technology in adapting to climate change. Dr. Stephen Leatherman, Director of the Laboratory for Coastal Research at Florida International University, explained the impact of sea level rise on coastal areas and anticipated that over the next century, huge populations would be affected in places such as China and Bangladesh.

Robert Stempel, former CEO of General Motors and current Chairman of the Board of Energy Conversion Devices, gave the luncheon keynote address. He recounted the automotive industry's many technological accomplishments - including the green battery, electric hybrid vehicles, fuel cell vehicles, and electric scooters - but stressed that US automakers would probably have to seek markets overseas where the higher and more realistic gasoline prices would increase demand for these innovative products.

After lunch the participants broke into separate sessions by industry. The defense group discussed ways to improve the Defense Department's energy efficiency given that DOD currently accounts for 73 percent of the US government's overall energy use. The group also suggested other important measures to help address climate change such as improving vehicle simulators, enhancing disease contingencies, improving climate monitoring and simulation modeling, and designing scenarios for catastrophic climate change and defense responses. The energy group proposed various strategies the energy sector could adopt to make renewables more competitive, including implementing carbon taxes, restructuring the industry to increase consumer choice, employing demand side management techniques, and changing tax incentives to make taxes rise instead of fall as autos get older and less efficient. The insurance group suggested the industry work toward improving sitings of new plant construction so that catastrophes like Bhopal would not occur in heavily populated areas. Participants also discussed creating incentive plans that would reward the use of storm shutters and thorough home inspections to encourage homeowners to reduce the vulnerability of their homes. The group felt that when houses changed hands, the industry should use the opportunity to encourage new homeowners to upgrade to safer, more efficient energy products. Participants also stressed that the industry itself should use its substantial investment resources for support of renewable energy, including R&D.

The public forum on the second day featured two panel discussions. The morning panel addressed international opportunities for renewable energy technology. The afternoon discussion focused on strategic opportunities for green power and green power marketing. Connecticut Senator Joseph Lieberman made the luncheon remarks. He described the positive action since the Kyoto Conference by both US and international business to develop greenhouse-benign approaches and suggested the private sector go to the lagging politicians and enlist their help to address climate change.

Several educational exhibits were on display throughout the day, including one on the EPA Green Lights Program.