Pathways To Sustainability, a UNEP Report

The United Nations Environment Programme (UNEP) has released a new ground-breaking report titled "Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication". Chapters pertaining to the Building and Manfuacturing sectors seek to make an economic case for investing in “greening” efforts and aim to provide policymakers with guidance on how to mobilize such investments. The report demonstrates how green investments in these sectors can create jobs and contribute to economic growth, while addressing environmental issues, in a pro-poor and equitable manner.

Buildings: Investing in Energy and Resource Efficiency (Key Messages)

- The Buildings sector of today has an oversized footprint. The buildings sector is the single largest contributor to global greenhouse gas emissions (GHG), with approximately one-third of global energy end use taking place within buildings. Further, the construction sector is responsible for more than a third of global resource consumption, including 12% of all fresh water use, and significantly contributes to the generation of solid waste, estimated at 40% of total volume.

- Constructing new green buildings and retrofitting existing energy- and resource-intensive buildings stock can achieve significant savings. Various projections indicate that investments ranging from $300B-$1T (depending on assumptions used) per year to 2050 can achieve savings of about one-third in energy consumption in buildings world-wide and significantly contribute to the reduction of CO2 emissions needed to attain the “benchmark” 450 ppm concentration of GHGs. To reduce 3.5 gigatons (Gt) of emissions through increased energy efficiency, the average abatement cost would be negative at -$35 per ton, reflecting energy cost savings, compared to -$10 per ton in the transport sector or positive abatement cost in the power sector of $20 per ton.

- Greening buildings also brings significant health and productivity benefits. Greening buildings can also contribute significantly to health, livability and productivity improvements. The increased productivity of workers in green buildings can yield savings higher than those achieved from energy efficiency, which are themselves considerable.

- Greening the building sector can lead to an increase in jobs. Investments in improved energy efficiency in buildings could generate an additional 3.5 million green jobs in Europe and the USA alone. Various studies point to job creation through different types of activities, for example new construction and retrofitting, production of resource efficient materials and appliances, the expansion of renewable energy sources and services such as recycling and waste management.

Manufacturing: Investing in Energy and Resource Efficiency (Key Messages)

- As currently configured, manufacturing has a large impact on the economy and the environment. Manufacturing is responsible for around 35% of global electricity use, over 20% of CO2 emissions and over a quarter of primary resource extraction. Manufacturing currently accounts for 23% of global employment.

- Key resource scarcities – including limited recoverable oil reserves, metal ores, and water – will challenge the sector. As industries resort to lower-grade ores, more energy is required to extract useful metal content. Improved recovery and recycling will increasingly become a decisive factor for both economic performance and environmental sustainability. The same applies to water use, which is expected to grow to over 20% of total global demand by 2030.

- Key components of a supply-side strategy include remanufacturing and the recycling of heat waste through combined heat and power installations. Closed-cycle manufacturing extends the lifespan of manufactured goods and reduces the need for virgin materials. Repair, reconditioning, remanufacturing and recycling are fairly labor-intensive activities, requiring relatively little capital investment. Remanufacturing operations worldwide save about 10.7 million barrels of oil each year, or an amount of electricity equal to that generated by five nuclear power plants.

- While direct job effects of greening manufacturing may be neutral or small, the indirect effects are significantly higher. Manufacturing has become increasingly automated and efficient, which has been accompanied by job losses. This can be countered by life-cycle approaches and secondary production, for example in the form of recycling, to secure jobs, for which safe and decent working conditions are paramount.

- Green-investment-scenario modeling for manufacturing suggests considerable improvements in energy efficiency can be achieved. By 2050, projections indicate that industry can practically “decouple” energy use from economic growth, particularly in the most energy-intensive industries. Green investment will also increase employment in the sector.

http://hqweb.unep.org/greeneconomy/GreenEconomyReport/tabid/29846/Default.aspx

The Benefits of Greeing Healthcare Facilities

On March 21, 2011 assisted living facilities became eligible to receive the Environmental Protection Agency’s ENERGY STAR recognition, allowing facilities to be among the top 25 percent of the most energy efficient buildings in the US. In addition to the possibility of receiving ENERGY STAR designation, providers will have access to the tools and information necessary to reduce their energy usage. Having access to these tools will help Facilities Managers understand how their buildings use energy and where opportunities for savings exist.

To learn more about the program visit: www.energystar.gov

Energy Efficiency among assisted and senior care facilities has been on the EPA’s agenda since 2008. These facilities, which operate on a 24/7 basis, have high energy needs and high energy bills. Given the profitability of senior care facilities, a dollar saved in energy can go a long way toward the bottom line. For assisted living facilities with a 10% profit margin, every dollar saved in energy is $10 the organization doesn’t have to make in revenue. Moreover, every dollar invested in an energy efficient upgrade can produce between $2 and $3 dollars in increased asset value.

One of the most effective activities that providers can do is retro-commission their facilities to ensure that all systems are functioning as they were intended when the buildings were originally designed. The Lawrence Berkeley National Lab found that proper maintenance can translate into energy savings of 5% to 15%.

Lighting is typically a large percentage of a building’s electrical load, so replacing incandescent lights with complex fluorescent lights, such as T-8 lamps with electronic ballasts, is a good strategy that often has a simple payback of less than three years.

Heating and cooling equipment tends to have longer payback periods. But when these measures are bundled with lighting or with other ENERGY STAR rated products, which cover more than 50 different product categories and produce 25% to 50% savings, organizations find that the bundled items often fall within a company’s hurdle rate.

Bundling projects to reduce overall project payback rates is strongly recommended by Pathway Lending. Our Energy Efficiency Loan Program uses total project energy savings to set monthly payments and amortize the loan. Combining projects with shorter and longer paybacks allows companies to do more projects at one time. And with Pathway Lending’s recently increased loan limit, which is now above $1 million dollars, companies can set their sights on the largest and most energy intensive projects at their facilities. There has never been a better time to start saving green by going green – contact Pathway Lending today at 1.888.5EE.PATH (1.888.533.7284) or at EEInfo@PathwayLending.Org.

The Greening of Tennessee's Economy

Tennessee's economy stands to benefit from a new emphasis on green technology - particularly Electric Vehicles. Leading the way is Nissan North America, which will bring Nissan Leaf production to its Smyrna plant in 2012.

The construction process advances every day and the foundation is already laid, structure being erected and roof being installed. The battery plant will roll out 200,000 batteries per year while the adjacent vehicle assembly plant is scheduled to produce 150,000 electric cars per year. Nissan will invest up to $1.7 billion in the local facility, with $1.4 billion coming in the form of a loan from the US Department of Energy.

This project and the development of a local supply chain, can have tremendous impact on the state's economy and make Tennessee a leader in the green economy.

Check out this interview with Carlos Ghosn, CEO of Nissan.

New Stats About the Average American Small Business

With the New Year, let's look at some new data on what constitutes the average American Business. The online journal, Small Business Trends, analyzed the results of the 2007 Survey of Business Owners. While their findings were not what I had expected this is interesting and certainly worth sharing with all you Small Business Owners out there. [Emphasis in the below article is mine, not the author's.]

What Does the Average American Business Look Like?
Posted By Scott Shane On January 3, 2011 @ 10:58

The Census Bureau recently released the results of the 2007 Survey of Business Owners, the government’s effort to examine American businesses every five years. The survey paints an interesting picture of what the average American business looks like.

The largest share of American companies is in the professional, scientific, and technical services sector, which accounts for 14.0 percent of U.S. companies. Construction accounts for the next highest portion at 12.6 percent. Manufacturing and agriculture, once the mainstays of American business, now account for 2.3 and 1.0 percent of U.S. companies, respectively.

The vast majority (78.8 percent) of U.S. businesses have no employees. And the share of businesses without employees now exceeds 90 percent in agriculture and arts, entertainment and recreation. The only sector of the economy where the majority of businesses has employees is accommodation and food services, in which 61.5 percent of businesses still have workers.

The average business generates over $1.1 million in sales, has more than 4 employees and pays an average compensation of over $41,000. However, when firms without employees, which have an average of only a little more $45,000 in sales and no employees (by definition) are excluded, average sales per firm rises to over $5 million, and average number of employees per business exceeds 20.

Wide industry variation exists in average sales and average employment. Average sales range from a little more than $96,000 in other services to over $25.1 million in utilities. Average employment varies from 0.7 employees per business in agriculture to over 107 in the management of companies.

One final point about the data is worth noting. The difference in economic impact of employer and non-employer firms is extraordinary. The 78.8 percent of businesses without employees only account for 3.2 percent of sales and none of the employment of U.S. companies. Employer firms are clearly much more economically important than non-employer firms.

For more data from this survey, click here.

Upcoming Pathway Lending Events - Chattanooga

Pathway Lending will be hosting two events to promote its new Energy Efficiency Loan Program in Chattanooga next week.

Wednesday September 8th, 2010: Free Lunch & Learn Event. 11am-1pm at Sticky Fingers BBQ, 2031 Hamilton Place Blvd. RSVP: jen.mclachlan@pathwaylending.org or 615.425.7171

Friday September 10th, 2010: Free Breakfast Event with the Chattanooga Chamber of Commerce. 8am-10am. 811 Broad Street. RSVP: 423.756.2121

Energy Efficiency Loan Fund Workshop Offered To Chattanooga Businesses
posted September 2, 2010

Pathway Lending will host a workshop in Chattanooga to inform and educate local businesses about how to access a new $50 million Energy Efficiency Loan Program announced on Aug. 25 by Governor Phil Bredesen.

The workshop, with Clint Gwin, president of Pathway Lending speaking, will be on Wednesday, from 11 a.m.–1 p.m. at Sticky Fingers BBQ, 2031 Hamilton Place Blvd.

Utilizing a unique model, Pathway Lending’s Energy Efficiency Loan Program enables businesses to achieve significant, long-term energy savings while increasing their productivity and profitability. The program offers below-market rate loans with terms extending to ten years.

Loans can finance up to 100% of costs on projects including building retrofits, equipment replacements or upgrades, lighting and renewable generation projects. The loans may be repaid with the energy costs savings derived from each project.

Presenters will explain how organizations can apply for loans and answer any questions people local businesses might have. With first round applications due by Nov. 1, the program is available to any business seeking to reduce energy consumption in their Tennessee facilities through building retrofits and upgrades, equipment replacement purchases or other energy efficiency or renewable energy projects.

The state of Tennessee, Pinnacle National Bank, TVA, the US Department of Energy, the US Economic Development Administration and Pathway Lending joined together to create this unprecedented program.

Founded in 1999, Pathway Lending is a Community Development Financial Institution that provides loans to businesses lacking access to traditional financing options throughout Tennessee.

Energy-efficiency loans will help businesses and state

In case you missed it...here's Clint's Op-Ed piece from the Tennessean.

Thanks to the leadership of Gov. Phil Bredesen and the state legislature, Tennessee businesses will now have access to energy-efficiency financing at an unprecedented level.

Through this leadership, the state is creating a unique public-private collaboration to develop a model for the rest of the nation to follow. This first-of-its-kind collaboration is leveraging state funds with capital from the Tennessee Valley Authority, Pinnacle National Bank and Pathway Lending to create a targeted loan program for financing energy-efficiency improvements. This program is receiving additional support from the U.S. Economic Development Administration and the U.S.
Department of Energy as a possible blueprint for other states.

Why is this important now? As many businesses understand, energy costs are rising and corporate budgets for capital projects are shrinking, and, as the Pew Foundation recently reported, lack of financing is the No. 1 barrier to implementing energy-efficiency projects.

This program will bring businesses in our state what is now unattainable — access to loan capital to finance energy-efficiency and renewable energy projects. The program will provide below-market-rate loans for improvements ranging from $20,000 to $1 million. Whether it's building retrofits, equipment upgrades or adding renewable energy generation, businesses can now take the next step in achieving the significant, long-term energy savings they've been demanding, all the while
becoming more competitive and reducing impacts on the environment.

Long-term savings are huge
The study "Energy Efficiency in the South," released in April, says that by reducing the growth of electricity consumption, Tennesseans could save $1.6 billion a year by 2020 and $3.1 billion a year by 2030. More importantly, energy-efficiency projects create and retain jobs in Tennessee. These economic impacts are felt locally where trained contractors, consultants and installers are needed for projects. Over the next 10 years, it is expected that this loan program will generate more than $100
million in loans and will create and retain more than 3,500 jobs while decreasing demand for electric power generation and reducing environmental impacts.

Tennessee has made significant strides to become a national leader in sustainability and green business over the past few years. Major corporations specializing in solar energy are moving to our state. Organizations like the Southeastern Energy Efficiency Alliance are educating businesses on the value of energy efficiency. Oak Ridge National Laboratory is using commercially available and lab-developed technology for energy-efficiency efforts such as the Net-Zero Energy Building and
Sustainable Campus Initiative, all of which have been recognized as potential national models.

When you add up the opportunities, energy efficiency is a smart decision for business and the state economy and an even better decision for the environment.

At Pathway Lending, we have been committed to bringing access to capital to Tennessee businesses since 1999, and this program is no different. We are
launching an online application process and look forward to working with businesses from sole proprietors to corporations and everyone in between in their efforts to become more energy efficient, environmentally friendly and globally competitive.

The Pathway Lending Energy Efficiency Loan Program Has Arrived

Today was an historic day for Pathway Lending, at 10:00 this morning Governor Bredesen, Commissioner Matt Kisber, Ken Breeden (TVA), Hugh Queener and Clint Gwin, President of Pathway Lending, announced the $50 million program we have been working on for over two years.

If you haven't heard, our low interest loans, initially offered at a fixed 5%, with terms up to 10 years can finance 100% of energy efficiency and renewable energy projects for businesses in Tennessee. We're excited to be part of the State of Tennessee's efforts to grow its green economy, create jobs, and make our existing businesses stronger in the global economy.

We invite Tennessee businesses to visit our website to learn more about this program. We will also be hosting a series of free lunch and learn events across the state of Tennessee during the month of September. If you're interested in implementing a project, or a part of the larger green sector in Tennessee, we encourage you to RSVP. Click here to view of Calendar of Events and RSVP!

The following photos are courtesy of the State of Tennessee: