Regions Take Action: The Benefits of Major Climate Policies

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Regions Take Action: The Benefits of Major Climate Policies
Regions
   Take
 Action:
The Benefits of
Major Climate Policies
Regions Take Action: The Benefits of Major Climate Policies
Acknowledgments
    The authors acknowledge Michael Northrop and the Rockefeller Brothers Fund, whose thought
    leadership and generous support made this handbook possible.

    The authors also thank the following individuals and organizations for offering their insights
    and perspectives on this work:

    Akshima Ghate                                       Luke Pritchard
    RMI India                                           Governors’ Climate and Forests
                                                        Task Force
    Cara Carmichael
    Rocky Mountain Institute                            Marika Metz-Hall
                                                        Department of Business, Economic
    Chris Yunker
                                                        Development, and Tourism
    Hawaii State Energy Office
                                                        Mauricio Philipp
    Clay Stranger
                                                        State government of Mato Grosso, Brazil
    Rocky Mountain Institute
                                                        Melissa Miyashiro
    Dimpy Suneja
                                                        Blue Planet Foundation
    RMI India
                                                        Paolo Natali
    Donovan Gordon
                                                        Rocky Mountain Institute
    New York State Energy Research and
    Development Authority (NYSERDA)                     Rolf Bateman
                                                        The Climate Group
    Fernando Sampaio
    Produce, Conserve, Include (PCI)                    Scott Glenn
                                                        Hawaii State Energy Office
    Frédéric Marquet
    State government of Hauts-de-France,                Sophie Benger
    France                                              The Climate Group

    Libby Ferguson                                      Thomas Koch Blank
    The Climate Group                                   Rocky Mountain Institute

                                                        Vanessa Ulmer
                                                        NYSERDA

                                                        Wendy MacPherson
                                                        NYSERDA

2
Regions Take Action: The Benefits of Major Climate Policies
About Rocky Mountain Institute
Rocky Mountain Institute (RMI)—an             adoption of market-based solutions that
independent nonprofit founded in              cost-effectively shift from fossil fuels
1982—transforms global energy use             to efficiency and renewables. RMI has
to create a clean, prosperous, and            offices in Basalt and Boulder, Colorado;
secure low-carbon future. It engages          New York City; the San Francisco Bay
businesses, communities, institutions,        Area; Washington, D.C.; and Beijing.
and entrepreneurs to accelerate the

This guide was produced in partnership with the Under2 Coalition
and The Climate Group.

About the Under2 Coalition and the Climate Group
The Under2 Coalition is driven by             The Climate Group is the Secretariat
a group of ambitious state and                to the Under2 Coalition and works with
regional governments committed to             governments to accelerate climate
keeping global temperature rises to           action through three work streams:
under 2°C. The coalition comprises            planning deep decarbonization
more than 200 governments that                pathways, scaling innovative policy
represent over 1.3 billion people and         solutions, and mainstreaming
nearly 40% of the global economy.             transparency and reporting.

Authors                                       Editorial and Design
Seth Coan, Jacob Corvidae,                    Editorial Director: Michael Banker
Jake Glassman, Ben Holland
                                              Editor: Kathryn Flynn
*Authors listed alphabetically.              Design by: Alchemy Mill
  All authors from RMI.                       Images courtesy of Shutterstock
                                              unless otherwise noted.

Contacts
Jacob Corvidae, jcorvidae@rmi.org

Seth Coan, scoan@rmi.org

Suggested Citation
Seth Coan, Jacob Corvidae, Jake Glassman, and Ben Holland.
Regions Take Action: The Benefits of Major Climate Policies.
Rocky Mountain Institute, September 2020.
www.rmi.org/regions-take-action

Download and Share
This guide can be downloaded and shared for free at
under2coalition.org/news/regions-take-action or rmi.org/regions-take-action.

                                                                                         3
Regions Take Action: The Benefits of Major Climate Policies
Table of
Contents
                                                         12-21                    22-33

                                                      Clean                       Carbon-Free
                                                      Electricity                 Buildings
Introduction                         6
                                                      Overview               14   Overview               24
Five Actions to Be Carbon-Free       8
                                                      Leadership in Action   15   Leadership in Action   25
How to Use This Guide               10
                                                      Key Milestones         16   Key Milestones         26
The Multiple Benefits
of Climate Action                   10                Keys to Success        18   Keys to Success        28

The Climate Decade                   11               Benefits               19   Benefits               29

Take Action Today                    11               Case Study Resources   20   Case Study Resources   32

Useful Resources                    68                Broader View           21   Broader View           33

4     Regions Take Action: The Benefits of Major Climate Policies
Regions Take Action: The Benefits of Major Climate Policies
34-45                       46-55                       56-67

Healthy                     Innovative                  Sustainable
Transportation              Industry                    Land Use

Overview               36   Overview               48   Overview               58

Leadership in Action   27   Leadership in Action   49   Leadership in Action   59

Key Milestones         38   Key Milestones         50   Key Milestones         60

Keys to Success        40   Keys to Success        52   Keys to Success        62

Benefits               41   Benefits               53   Benefits               63

Case Study Resources   42   Case Study Resources   54   Case Study Resources   66

Broader View           43   Broader View           55   Broader View           67

                                                                               5
Regions Take Action: The Benefits of Major Climate Policies
Introduction
The risk and current impacts of
climate change mean we must act.
We can advance major economic
and social benefits while preventing
the worst of climate change.
We can create great outcomes
for our communities without
jeopardizing them with extreme
weather, floods, droughts,
wildfires, and pandemics.
This guide helps show the way.

6
Regions Take Action: The Benefits of Major Climate Policies
Regions Take Action: The Benefits of                              The Intergovernmental Panel on Climate
Major Climate Policies shows how regional                         Change (IPCC) reports that it is critical
governments are reaping the immediate                             to limit global warming to 1.5°C over
benefits of decisive climate action while                         the next 10 years.1 To avert a global
also safeguarding the future. For these                           climate catastrophe that could destabilize
governments, a few key actions are driving                        economies and cause untold social
great impacts on the economy, equity,                             unrest, we must cut greenhouse gas
health, and air quality, as well as resilience                    (GHG) emissions in half by 2030. This
and security.                                                     must be accomplished while fulfilling the
                                                                  responsibility ministries and departments
Five regions share their experiences here.                        have to improve their sectors and their
These regions and their actions are at                            citizens’ quality of life. Thus, we are in
the heart of this guide for two reasons.                          “the climate decade.”
The work they are doing is transformative
and leads the way into the new climate                            State, provincial, and regional governments
economy. Also, the actions they have                              have a critical and unique role to play. They
taken are widely applicable to many other                         can drive transformative change at scale
governments. These actions aren’t just                            and provide a critical link between national
examples of what the leaders did; they are                        and local climate action. States, provinces,
blueprints for what many regions should                           and regions have direct responsibility for
do now.                                                           key areas of policy related to climate and
                                                                  are thus able to show the many benefits of
To make transformative change, support                            transformative action.
is needed across a variety of regional
government departments and ministries.                            Regional governments have a unique ability
It cannot be driven by climate champions                          to create change. They enable counties
alone. Regions Take Action, designed as                           and cities to take action, and they prove
a resource for officials, highlights multiple                     solutions that other regions and national
benefits relevant to a particular sector. It                      governments can adopt. Because of their
is also available in shorter formats so that                      unique ability to drive both city and national
specific, relevant sections can be                                action, regions have a tremendous role to
shared separately.                                                play in shaping global outcomes.

The guide focuses on five high-impact                             The Actions
actions and draws on the broader set of
actions identified previously in The                              This guide illustrates five actions
Carbon-Free Regions Handbook.                                     where regional governments can take
                                                                  transformative climate action and support
                                                                  a set of broader benefits and needs.
                                               Download
                                               The Carbon-Free    The five actions are:
                                 MOUN
                                               Regions Handbook
                              KY
                                        TA
                        ROC

                                          IN

                             IN
                                  STIT UTE

                                                                     Clean Electricity

                                               Download              Carbon-Free Buildings
                                               The Carbon-Free
                             KY
                                MOUN
                                               City Handbook         Healthy Transportation
                                       TA
                       ROC

                                         IN

                         IN
                              STIT UTE

                                                                     Innovative Industry

                                                                     Sustainable Land Use

1 Intergovernmental Panel on Climate Change. 2018. Global Warming of 1.5oC. Special Report 15.
  https://www.ipcc.ch/sr15/.

                                                                                                                   7
Regions Take Action: The Benefits of Major Climate Policies
5
    actions to be
    carbon-free
                                                                      Clean
                                                                    Electricity

                                                                        1
                                                                    Convert to
                                                                  clean sources
                                                                     of power
8   Regions Take Action: The Benefits of Major Climate Policies
Regions Take Action: The Benefits of Major Climate Policies
Healthy                   Sustainable
               Transportation                Land Use

Carbon-Free                   Innovative
 Buildings                     Industry

      2                                        3
             Decarbonize end-uses            Enhance the
                primarily through          carbon storage
          electrification and efficiency    of ecosystems
                                                            9
Regions Take Action: The Benefits of Major Climate Policies
These activities will ideally run in parallel, as                   Each case study illustrates an example of a
                 they are interrelated strategies. For example,                      transformative solution for each sector. While
                 a carbon-free building sector becomes easier                        they may not represent the entire solution for
                 when electricity is moving toward clean                             a sector and are necessarily shaped by their
                 generation. While each action is ambitious, the                     local contexts, the highlighted approaches
                 examples show how determined action can                             demonstrate tangible pathways toward
                 also spur benefits on a larger scale.                               achieving the more comprehensive solution of
                                                                                     decarbonizing the economy.
                 To facilitate broader acceptance of these
                 actions, this guide highlights the following                        This guide is brief by design. For more
                 benefits which, in addition to emissions                            examples, resources, and the actual policy
                 reductions, result from these actions:                              documents, refer to The Carbon-Free
                                                                                     Regions Handbook.

                 Equity and inclusion. Actions that are
                 designed to ensure just treatment, equality of                      The Multiple Benefits
                 opportunity, and equal access to information                        of Climate Action
                 and resources for all
                                                                                     Deploying low-carbon technologies and
                 Economic development. Actions that support                          strategies will have impacts well beyond
                 the economic engines of our communities,                            reducing GHG emissions. Climate action effects
                 promote job growth, and bolster prosperity                          include positive human health implications;
                                                                                     improved ecosystem functioning; and
                 Air quality and health. Actions that promote
                                                                                     additional macroeconomic, social, or equity
                 health and well-being through improved
                                                                                     impacts.2 For example, one study estimates
                 environmental and social conditions
                                                                                     that decreased air pollution resulting from
                 Resilience and security. Actions that help                          climate action to meet a 1.5°C scenario leads
                 sustain life and livelihoods, promote safety,                       to approximately 153 million fewer premature
                 and reduce risk                                                     deaths worldwide. 3 In the United States alone,
                                                                                     the economic value of the avoided deaths is
                                                                                     estimated at $37 trillion. 4 These benefits may, in
                 How to Use This Guide                                               some ways, measure up to the climate change
                                                                                     mitigation benefits.
                 Each priority action is presented within a stand-
                 alone document that can be detached from the                        Most major policies are not enacted to
                 broader handbook and shared with relevant                           address climate change alone; rather, by
                 departments, officials, and staff.                                  solving connected problems, we can introduce
                                                                                     truly transformative policies and create new
                 Each action features a case study of leadership
                                                                                     opportunities. When non-carbon benefits of
                 in action to show how these policies and
                                                                                     climate action are properly considered and
                 programs can be instituted. The intent is
                                                                                     articulated, they become game-changers for
                 to impart lessons learned in surmounting
                                                                                     decision makers.
                 the challenges associated with instituting
                 transformative policies.

                 2 Ürge-Vorsatz, Diana, Sergio Tirado-Herrero, and Navroz K. Dubash. 2014.
                   “Measuring the Co-Benefits of Climate Change Mitigation.” Annual Review of Environment and Resources 39 (1): 549–82.
                   https://www.researchgate.net/publication/267098768_Measuring_the_Co-Benefits_of_Climate_Change_Mitigation.
                 3 Shindell, Drew, Greg Faluvegi, Karl Seltzer, and Cary Shindell. 2018. “Quantified, Localized Health Benefits of Accelerated
                   Carbon Dioxide Emissions Reductions.” Nature Climate Change 8 (April) 291–95. https://doi.org/10.1038/s41558-018-0108-y.
                 4 Shindell, Drew. 2020. “Health and Economic Benefits of a 2°C Climate Policy.” Testimony before the House Committee on
                   Oversight and Reform Hearing on The Devastating Impacts of Climate Change on Health. August 5, 2020.
                   https://oversight.house.gov/sites/democrats.oversight.house.gov/files/Testimony%20Shindell.pdf.

10   Regions Take Action: The Benefits of Major Climate Policies
The Climate Decade                          seriousness needed then we will lose
                                            our chance to stop the worst impact of
Many crises face us today. We cannot        temperature rises. This means that we
ignore them. Given the interconnected       all need to work together: businesses,
nature of climate, resource availability,   governments, states, regions, cities and
economic growth, and equity, we cannot      individuals. We need to see tangible
address one crisis at a time. One stone,    commitments and changes across all
two birds is a proverb that spans           sectors. Put simply, we need to see
many cultures. We need holistic policies    action. This guide is here to act as a
that solve many problems at once.           starting point for states and regions.
The result: better communities and a        We hope to see it widely adopted and
stronger country.                           its suggestions for emissions reduction
                                            expanded to governments everywhere.
We are now in the Climate Decade.           We can fight climate change and limit its
If we do not halve global emissions by      impacts but we have to take action now.
2030 and treat climate change with the      There is no time to wait.

  Take action today:
  Commit to and plan
  for these five ambitious actions.

  Share these actions
  with relevant officials and policymakers to build momentum.

  Adapt
  these actions to implement in your jurisdiction.

  Launch
  regional actions that effect
  national and global change.

  Measure
  and report on progress.

                                                                                        11
12   Regions Take Action: The Benefits of Major Climate Policies
Clean
Electricity
Commit to creating clean
electricity. Renewables are
cost-effective investments and
clean electricity is fundamental
to a carbon-free society.

                                   13
Clean Electricity
                         After years of declining costs and support    The rise of renewable energy tracks
                         from progressive policies, clean and          closely with the decline of coal,
                         renewable energy resources are now            bringing about improvements in public
                         competitive with fossil fuels, producing      health in communities struggling from
                         significant and tangible benefits for         disproportionate exposure to pollution.1
                         the energy system and our quality of          In addition, the global renewable energy
                         life. Electric utilities across the globe     industry continues to support the economy,
                         are retiring coal plants, subnational         with 11 million jobs currently and a projected
                         governments are prioritizing renewable        24 million jobs by 2030. In the United States
                         sources for electricity, and people are       alone, clean energy jobs outnumber jobs
                         reaping the rewards of cleaner and            in fossil fuel industries by three-to-one.
                         healthier options.
                                                                       A fully clean and renewable electricity
                         For years, moderate carbon reduction          system is the foundation of a zero-carbon
                         targets have been commonplace in many         energy economy. Without significant
                         places around the world, but governments      progress in decarbonizing the electricity
                         are now stepping up their ambitions with      sector, efforts related to buildings, electric
                         100% renewable and clean energy targets,      mobility, and industry will not achieve their
                         standards, and requirements. Policymakers     full impact and promise. Though clean
                         have succeeded in passing these policies,     energy, such as wind and solar, continues
                         not just by communicating climate concerns    its expansion, there is still much to be done.
                         but by presenting a broad set of benefits     It is clear now that a zero-carbon future
                         associated with renewable energy—in           is within our grasp, but a fully renewable
                         particular, public health, energy security,   electricity system requires ambitious
                         economic development, and resiliency.         leadership, transformative policies,
                                                                       and a comprehensive vision.

                                                                       As subnational leaders pursue policies to
                                                                       transition fully to clean and renewable
                                                                       electricity, it is critical that they consider
                                                                       the successes and challenges of their
                                                                       peers around the globe. A vision for a 100%
                                                                       renewable electricity system is the first step,
                                                                       but the road to reaching that goal is filled
                                                                       with political and technical challenges.
                                                                       Fortunately, leaders in this space are
                                                                       making great progress toward
                                                                       overcoming obstacles and providing
                                                                       invaluable lessons for scaling a clean and
                                                                       renewable future for all.

                                                                       1 Epstein, Paul R., Jonathan J. Buonocore, Kevin Eckerle,
                                                                         Michael Hendryx, Benjamin M. Stout III, Richard
                                                                         Heinberg, Richard W. Clapp, et al. 2011. “Full Cost
                                                                         Accounting for the Life Cycle of Coal.” Ecological
                                                                         Economics Reviews in the Annals of the New York
                                                                         Academy of Sciences 1219 (February): 73–98.

14   Regions Take Action: The Benefits of Major Climate Policies
Clean Electricity
Hawaii, USA

              Leadership in Action
               Hawaii, USA: 100% Renewable Energy Portfolio

              Hawaii was the first state in the United   to set an RPS of 100% by 2045. In doing
              States to enact legislation for a 100%     so, the government set the bar not only
              renewable electricity system. In the       for Hawaii but for governments across
              early 2000s, the state began the           the globe. Today, Hawaii’s RPS stands
              process of establishing and                as a model for transitioning to a fully
              frequently updating its renewable          renewable energy future. Hawaii’s
              portfolio standard (RPS).                  success in actualizing this vision is the
                                                         result of the efforts of a broad base
              What began as a process of                 of ambitious, committed, and
              incrementally increasing the standard      collaborative stakeholders.
              culminated in 2015, when Hawaii voted

                                                                                                15
Driving Forces                                      Energy and
                  Several factors                                     economic security.
                                                                      Hawaii’s reliance on oil as a fuel for
                  contributed to the                                  electricity makes the state vulnerable to
                  state of Hawaii                                     the volatile and high-cost nature of the
                  passing the 100% RPS:                               global oil market. Low-income households
                                                                      spend an average of 15% to 20% of their
                                                                      income on electricity.

Key Milestones
                                                                   ACT 155: 50% RPS
                                                                   A partnership between the state of Hawaii
                                                                   and the US Department of Energy, the
 Net Energy Metering (NEM) and 9% RPS                              HCEI establishes Hawaii as an innovation
 Hawaii enacts NEM, which allows                                   test bed to transform the energy sector
 customers to be compensated at the                                into one based on renewable energy and
 full retail electricity rate for excess solar                     energy efficiency.
 generation exported to the grid. At the
 same time, Hawaii establishes a 9% RPS.

                                Utility Scale Wind Project                               Hawaii Clean Energy
                                The 30 megawatt                                          Initiative (HCEI)
                                Kaheawa Wind Power                                       Act 155, Session Laws of
                                project is installed on the                              Hawaii 2009, increases the
                                island of Maui.                                          RPS goals as a percentage
                                                                                         of electricity sales to meet
                                                                                         or exceed 25% by 2020 and
                                                                                         40% by 2030.

16   Regions Take Action: The Benefits of Major Climate Policies
Clean Electricity
Resilience.                                         Economic development.
Hawaii’s vulnerability to its oil                   Many Hawaiians refer to renewable
dependence came into sharp focus                    energy as “indigenous energy” for its
after the 2011 tsunami wiped out                    potential to harness the power of the
the Fukushima nuclear plant and                     sun and offshore winds. The renewable
forced Japan to offset its losses with              energy industry also provides plenty of
emergency imports of oil. This created              opportunity for job growth on the islands.
chokepoints in supply and drove
unseen levels of price volatility.

       Fukushima Daiichi disaster
       The 2011 tsunami that wiped out the Fukushima Daiichi
       nuclear plant forces Japan to offset its energy losses with
       emergency imports of oil, which sends global oil prices
       upward and, for Hawaii, makes electricity prohibitively
       expensive. This leads to a rapid adoption of rooftop solar,
       which quickly becomes a highly competitive alternative.

                                                             100% RPS established
                                                             Hawaii becomes the first US state to
                                                             proclaim a 100% renewable energy
                                                             target for each of its six separate
                                                             island electric systems.

                                                                                                    17
Guiding vision
                                       The clear vision of a 100% RPS is a critical enabling force.
                                       Centering on this guiding vision results in a bold and
                                       transformational policy while allowing for certain definitions
                                       to be worked out subsequently.

     Keys to                                                               Community engagement
     Success                                                               To ensure the success of the RPS, policymakers
                                                                           and advocates coordinate and leverage their
     Hawaii’s RPS was the                                                  respective strengths to build a broad base of
                                                                           community support. In the years leading up
     result of coordination,                                               to the RPS legislation, Blue Planet Foundation
     commitment, and                                                       and other community organizations built a
                                                                           grassroots coalition of community members,
     strategic planning
                                                                           students, and supportive business leaders.
     by a wide array of
     policymakers,
     industry leaders,
     and advocates. Some
     of the key elements
     to success include the
                                                                                       Governmental Champions
     following factors:
                                                                                       Within the state government,
                                                                                       credit is frequently given to
                                                                                       “brave politicians” who took a
                                                                                       stand to pass the RPS. Hawaii
                                                                                       state officials and policymakers
                                                                                       played a critical role in building
                                                                                       the support of utilities, the
                                                                                       business community, and
                                                                                       government agencies.

                                                                                 Cost competitiveness
                                                                                 of renewables
                                                                                 The economic advantages of
                                                                                 renewable energy over oil-based
                                                                                 electricity serve as a contributing
                                                                                 force to justifying a 100% RPS.

18   Regions Take Action: The Benefits of Major Climate Policies
Clean Electricity
Benefits
In addition to its carbon reduction potential, Hawaii’s progress toward achieving 100% clean
and renewable electricity will produce a number of improvements to the economy of Hawaii
and the lives of the people who live there.

Economic Development                                             Equity
Job growth. As of 2017, there were 2,715 solar                   Multifamily dwellings. Going forward,
jobs in Hawaii, which ranks fifth in the nation                  Hawaii intends to significantly increase the
for solar jobs per capita.                                       supply of rooftop and community solar
                                                                 energy for residents of apartment buildings
Renewable industry. The RPS will require                         and other multifamily dwellings.
extensive build-out of solar and wind
installations, as well as critical grid                          Land use. Hawaii stakeholders are working
infrastructure, which will result in                             closely with communities to ensure an
long-term, sustained economic growth                             equitable distribution of renewable energy
and job opportunities.                                           assets to prevent disproportionate use of
                                                                 some lands over others.
Health
                                                                 Resiliency and Security
Emissions. The RPS reduces electricity sector
emissions of SO2, NOx, and PM2.5.2                               Energy security. The Hawaii RPS will
                                                                 eliminate dependence on oil and shelter the
Health costs. The total health and                               state from the costly and volatile swings of
environmental benefits of RPS across the                         the global oil market.
United States are valued at an estimated
$97 billion.2                                                    Grid resiliency. In response to the RPS,
                                                                 Hawaiian utilities are modernizing their
                                                                 systems to prevent grid failure and ensure
                                                                 access to power.

2 Mai, Trieu, Ryan Wiser, Galen Barbose, Lori Bird, Jenny Heeter, David Keyser, Venkat Krishnan, Jordan Macknick,
  and Dev Millstein. 2016. A Prospective Analysis of the Costs, Benefits, and Impacts of U.S. Renewable Portfolio
  Standards. National Renewable Energy Laboratory and Lawrence Berkeley National Laboratory.
  http://www.nrel.gov/docs/fy17osti/67455.pdf.

                                                                                                                    19
Solar prices are lower and less volatile.
                                                          Hawaii Oil and Electricity Price Volatility Compared
                                                          with Average Solar Price3

                                40                                                                                                                                                      160

                                35                                                                                                                                                      140

                                30                                                                                                                                                      120
Electricity Price (cents/kWh)

                                25                                                                                                                                                      100

                                                                                                                                                                                              Oil Price ($/barrel)
                                20                                                                                                                                                      80

                                15                                                                                                                                                      60

                                10                                                                                                                                                      40

                                 5                                                                                                                                                      20

                                0                                                                                                                                                       0
                                 2010           2011          2012          2013          2014            2015           2016         2017          2018           2019          2020

                                                   Fuel Oil - Avg. Price                  Retail Electricity Price - all sectors                 Solar Electricity Price

                                                          Additional case study resources:
                                                          State of Hawaii Public Utilities Commission Report to the 2019
                                                          Legislature on Hawaii’s Renewable Portfolio Standards4

                                                          DSIRE Summary of Hawaii RPS 5

                                                          Report: Powering Paradise6

                                                          3 Hawaii electricity price (cents/kWh) and crude oil imports price ($/barrel) cited from State of Hawaii Department
                                                            of Business, Economic Development, & Tourism. Solar prices (cents/kWh) are based on US average, cited from
                                                            International Renewable Energy Agency, IRENA (2020), Renewable Power Generation Costs in 2019.
                                                          4 State of Hawaii Public Utilities Commission. 2018. Report to the 2019 Legislature on Hawaii’s Renewable Portfolio.
                                                            https://puc.hawaii.gov/wp-content/uploads/2018/12/RPS-2018-Legislative-Report_FINAL.pdf.
                                                          5 Database for State Incentives for Renewables & Efficiency. 2018. “Renewable Portfolio Standard.” May 31, 2018.
                                                            https://programs.dsireusa.org/system/program/detail/606.
                                                          6 Cross-Call, Dan, Jason Prince, and Peter Bronski. 2020. Powering Paradise: How Hawaii Is Leaving
                                                            Fossil Fuels and Forging a Path to a 100% Clean Energy Economy. Rocky Mountain Institute.
                                                            http://www.rmi.org/insight/powering-paradise.

     20                              Regions Take Action: The Benefits of Major Climate Policies
Clean Electricity
Broader View
As an island state with a predominantly petroleum-based electricity sector, Hawaii is
uniquely well positioned to capture the benefits of renewable energy, but the insights
gleaned from its efforts are nonetheless relevant to all subnational governments.
In developing economies, where energy demand and the associated infrastructure
investments will increase dramatically over the coming decades, decision makers
have a choice to leapfrog over fossil fuels–based energy and invest in clean and
renewable electricity.

Ultimately, the success of a 100%                      sales and infrastructure cost recovery
renewable electricity policy depends                   with a performance-based approach—
on the coordination of a diverse set of                an enabling regulatory framework
political, commercial, and community                   for transitioning clean, resilient, and
stakeholders. To establish a legal                     affordable electricity.
and enforceable renewable energy
commitment, policymakers and                           This shift in thinking is especially
stakeholders must co-develop an                        relevant in light of the disproportionate
actionable vision. Since the success of                electricity costs and levels of exposure
passing Hawaii’s RPS, 13 other US states               to pollution low-income communities
have followed suit with 100% clean and                 bear worldwide. Though the renewable
renewable electricity targets. Elsewhere               energy industry continues to grow and
across the globe, after recognizing the                make great progress toward achieving
resiliency benefits of renewable energy,               an array of climate, health, and
Fukushima Prefecture has established a                 economic benefits, there is much work
goal of 100% renewable electricity 7                   to be done to ensure universal
                                                       availability of its benefits. To that end,
Policymakers must also complement                      policymakers should strive to build
their ambitious targets with a technically             equity and broad availability into their
driven, defensible, and equitable                      strategies. Doing so will unlock the
approach to adapting the electric utility              potential for a global transition to 100%
business model. For many subnational                   clean and renewable electricity.
governments, this may require replacing
the traditional approach to electricity.

7 McCurry, Justin. 2020. “Fukushima Unveils Plans to Become a Renewable Energy Hub.” The Guardian,
  January 5, 2020. https://www.theguardian.com/environment/2020/jan/05/fukushima-unveils-plans-to-
  become-renewable-energy-hub-japan.

                                                                                                     21
22   Regions Take Action: The Benefits of Major Climate Policies
Carbon-
Free
Buildings
Construct and upgrade our
buildings to be all-electric and
efficient, which will also create local
jobs and healthier, comfortable
places to live and work.

                                          23
Carbon-Free
                         Buildings
                         The buildings sector is on the verge of a major renovation, and technologies and strategies
                         for carbon-free buildings are in style. More than being fashionable, policies supporting
                         carbon-free buildings, when done right, provide multiple direct benefits to improve health,
                         equity, and resilience and drive economic growth.

                         These benefits can hardly be overstated.                        Furthermore, with increased awareness
                         Building energy efficiency and                                  that the building sector is one of the
                         electrification strategies lead to improved                     largest sources of anthropogenic CO2
                         indoor and outdoor air quality, saving                          emissions, it has come under sharp focus
                         lives and improving health. Better access                       as an opportunity for decarbonization
                         to technology and services lowers energy                        policy across the globe. About 40% of
                         bills for disadvantaged populations and                         global energy–related CO2 emissions are
                         addresses energy affordability. Energy                          attributable to the buildings sector—28%
                         efficiency and flexibility in buildings help                    from building operations and 11% from
                         balance the grid’s loads and reduce grid                        building materials and construction.1 To
                         infrastructure costs. With adequate support                     limit climate change to 1.5°C, we need to
                         and policies, the energy services and                           drastically accelerate the rate of energy
                         retrofit industry will continue, if not                         retrofits for existing buildings as well as
                         accelerate, its current rate of impressive                      ensure that all new buildings are zero or
                         growth, providing widespread economic                           near-zero net carbon. In addition, since
                         growth and job opportunities.                                   people spend approximately 90% of their
                                                                                         time in buildings, creating healthy indoor
                         Now more than ever, transformative                              environments is very important. Increasing
                         solutions are available, and well-designed                      awareness about the health and wellness
                         building sector policies are aimed at                           opportunities of building design is also
                         three core tenets to maximize the benefits                      beginning to drive important policy changes
                         for the sector:                                                 with both health and climate benefits.
                         Electrify: Removing fossil fuel use in buildings                Improving buildings remains one of the
                         by upgrading to all electric equipment.                         largest untapped and cost-effective
                                                                                         decarbonization strategies, and regions
                         With Efficiency: Reducing energy use and
                                                                                         will do well to participate in this revolution
                         enabling smart, flexible adjustment of
                                                                                         of the building industry. The path toward
                         energy needs through better design and
                                                                                         a carbon-free building sector is a path
                         retrofit of buildings.
                                                                                         toward prosperity.
                         And Low-Carbon Materials: Using low-
                         carbon materials in new construction
                         and major retrofits; reusing rather than
                         manufacturing new carbon-intensive
                         materials where possible.

                         1 Global Alliance for Buildings and Construction.2019. 2019 Global Status Report for Buildings and Construction.
                           http://wedocs.unep.org/bitstream/handle/20.500.11822/30950/2019GSR.pdf?sequence=1&isAllowed=y.

24   Regions Take Action: The Benefits of Major Climate Policies
Carbon-Free Buildings
Hawaii, USA

              Leadership in Action
               New York State, USA: Climate Leadership and Community Protection Act

              In 2019, New York State enacted the        Buildings are explicitly addressed as a
              Climate Leadership and Community           core consideration in achieving these
              Protection Act (CLCPA), sweeping           targets, and the CLCPA is supported by
              legislation that establishes the           a large set of complementary policies in
              strongest economy-wide GHG                 the buildings sector.
              emissions limits in the United States.
                                                         For state agencies, much of their new
              The policy calls for New York to realize   and existing building decarbonization
              carbon neutrality, with direct emissions   efforts now occur under CLCPA framing.
              reductions of 85% by 2050, including a     The state’s comprehensive strategy
              40% reduction from 1990 levels by 2030.    to move its building stock to carbon.

                                                                                             25
Key Milestones
The CLCPA exists in an ecosystem of connected state policies.
Key policies are listed below in order of issuance:

                                                                    Analysis reveals key role of energy efficiency
                                                                    The state publishes New Efficiency: New York, and its
  Statewide emissions targets set                                   analysis reveals that New York will not meet these GHG
                                                                    reduction targets unless stronger action is taken regarding
  The New York State Energy Plan sets ambitious
                                                                    energy efficiency; one-third of the emissions reductions
  GHG emissions reduction targets, which are
                                                                    needed to achieve the 40% by 2030 goal will come from
  subsequently embedded in the CLCPA.
                                                                    building energy efficiency strategies.

                 NYSERDA launches Clean Energy Fund                                    Utilities required to
                 NYSERDA launches the $5 billion Clean                                 drive emissions reductions
                 Energy Fund, spanning four portfolios:                                The state Public Service Commission (PSC)
                 market development, innovation and                                    issues its Accelerated Efficiency Order, which
                 research, solar affordability through                                 more than doubles utility energy savings
                 NY-Sun, and the New York Green Bank.                                  goals through 2025 relative to historic levels.

                          neutrality includes a process of committing             reducing the costs of energy efficiency
                          nearly $5 billion between 2020 and 2025                 retrofits, building electrification, and high-
                          to incentives and market development                    performance new construction; advancing
                          activities for energy efficiency and                    and demonstrating strategies to achieve
                          heat pump deployment. Much of these                     deeper energy savings; providing financial
                          investments are funded by ratepayers                    and technical assistance, including to low-
                          and administered by utilities to achieve                income consumers; and providing financing
                          ambitious energy savings targets. These                 for market participants. Other components
                          initiatives are expected to save customers              of New York’s strategy include advancing
                          much more on energy costs and will                      building energy codes and stretch codes;
                          simultaneously accelerate market adoption               procuring state agency commitments to
                          of low-carbon technologies.                             lead by example in their facilities; and
                                                                                  continuing to develop a Carbon Neutral
                          The New York State Energy Research and                  Buildings Roadmap and a Building
                          Development Authority (NYSERDA), the                    Electrification Roadmap to articulate
                          state’s clean energy and innovation agency,             policies and programs for longer-term
                          plays a complementary role in these                     market transformation.
                          efforts. NYSERDA’s investments emphasize

26    Regions Take Action: The Benefits of Major Climate Policies
Carbon-Free Buildings
                                                                     New initiative significantly
    Governor commits to advancing                                    scales up funding
    toward a carbon-neutral building stock                           The PSC issues “Order Authorizing
    Governor Andrew M. Cuomo launches                                Utility Energy Efficiency and
    the state’s Green New Deal, including a                          Building Electrification Portfolios
    directive to chart a path to making                              through 2025,” a large-scale
    New York’s statewide building stock                              undertaking aimed at advancing
    carbon neutral.                                                  energy efficiency and heat pump
                                                                     deployment in the state.

                                  CLCPA helps unify the existing policy landscape
                                  The CLCPA is signed, and it provides an avenue
                                  for codifying, uniting, and strengthening much of
                                  the state’s work in the building sector, with exact
                                  details to be set through a scoping process.

Driving Forces
Factors that led New York to enact the CLCPA include:

Threat of                               Green economic                   Grassroots
climate impacts.                        opportunity.                     advocacy.
New York and its leadership             New York recognizes              Multiple groups of
increasingly recognize that             that the development             stakeholders (e.g.,
dramatic decarbonization is             of green technologies            environmental, labor,
necessary to mitigate climate           and sustainable                  and community interests)
impacts that pose a significant         practices creates jobs           came together with clear
threat to the state’s economy           and strengthens the              demands to advance the
and infrastructure. The effects         state’s economy.                 state’s new energy economy,
of Hurricane Sandy represent                                             address climate change,
a tangible example of what                                               advance climate justice,
the state hopes to avoid.                                                and enhance resilience.

                                                                                                    27
Establishing a clear mandate
                       Provides a framework under which many other existing initiatives now fall.
                       The CLCPA is a guiding document that codified a number of Governor
                       Cuomo’s goals and executive orders, and it ensured that existing and
                       future decarbonization programs reflect the CLCPA mandate.

                                                         Reflecting constituent interests
                                                         Incorporates stakeholder feedback into the planning and policy
                                                         process. Key stakeholders include affordable housing advocates,

Keys to                                                  who have helped to elevate equity considerations, and market actors,
                                                         who have encouraged the use of energy efficiency and heat pump
Success                                                  incentives that are easy to understand and access.

Core factors in
New York State’s                                                       Incentives and information
success include                                                        Gains support from consumers and market
the following:                                                         actors as a result of state policies that advance
                                                                       goals through a portfolio of incentives, technical
                                                                       assistance, and demonstration projects.

                                                                             Scalability and consistency
                                                                             Achieves statewide consistency through unprecedented
                                                                             collaboration between utilities and state agencies.
                                                                             For statewide heat pump and low- to moderate-
                                                                             income (LMI) initiatives, the overall program structure,
                                                                             customer experience, and contractor experience are
                                                                             designed to be similar throughout the state.

                                                                        Optimizing impact
                                                                        Tracks progress on a number of key performance
                                                                        indicators, which allows the state to better understand
                                                                        and then adjust its initiatives. For specific initiatives,
                                                                        metrics include the number of utility programs
                                                                        implemented, cost reductions in certain technologies,
                                                                        and the number of heat pump installations.

                                                        Accelerating market adoption
                                                        Removes barriers to advanced technologies, such as heat pumps, so
                                                        they become the default options. This includes ensuring that high-quality,
                                                        affordable installations become standard practice; market fragmentation
                                                        is reduced; and consumers have easy access to information.

28   Regions Take Action: The Benefits of Major Climate Policies
Carbon-Free Buildings
Benefits
The CLCPA’s main goal is to build an equitable and inclusive clean energy economy in
New York. The benefits of the state’s proactive leadership in this sector include:

Economic Development                                         Infrastructure costs savings. Policies
                                                             that promote “non-wires alternatives”
Keep revenue in state while supporting
                                                             can reduce capital investments
clean technologies. New York residents
                                                             associated with electric transmission and
spend $14 billion on heating every year,
                                                             distribution infrastructure,2 and policies
including $8 billion on gas heating and
                                                             that promote electrification may avert
$4 billion on oil heating. Most of this
                                                             expensive gas pipeline infrastructure. 3
money leaves the state. Eliminating
fossil fuel heating would keep billions of                   Desirability. As cities around the world
dollars in New York.                                         grow rapidly, regions with sustainable
                                                             building policies that promote a cleaner,
Job creation. Policies that support
                                                             healthier environment are more able
transformative technologies like heat
                                                             to attract and retain residents and are
pumps create jobs directly through
                                                             seeing a greater influx of foreign direct
installation and indirectly through
                                                             investment as well. 4
multiplier effects and private sector
investments. In addition, New York’s
policies directly fund workforce                             Health
development, including, for example,                         Air quality. Fuel combustion in buildings
training people to install heat pumps in                     affects indoor air quality and poses
their communities.                                           serious health risks from particulate
                                                             pollution and gases like NO2 and

2 Stanton, Tom. 2015. Getting the Signals Straight: Modeling, Planning, and Implementing Non-Transmission
  Alternatives Study. National Regulatory Research Institute. https://pubs.naruc.org/pub.cfm?id=536EF440-
  2354-D714-51CE-C1F37F9B3530.
3 Golden, Rachel. 2019. Building Electrification Action Plan for Climate Leaders. Sierra Club. https://www.
  sierraclub.org/sites/www.sierraclub.org/files/Building%20Electrification%20Action%20Plan%20for%20
  Climate%20Leaders.pdf.
4 Pisani, Niccolò, Václav Ocelík, and Ganling Wu. 2019. “Does It Pay for Cities to Be Green? An Investigation of
  FDI Inflows and Environmental Sustainability.” Journal of International Business Policy 2 (1): 62–85.

                                                                                                              29
CO. In New York City alone, research                            • Coordinating and improving access to
                         shows that PM2.5 particulate pollution, for                       information by aligning LMI initiatives
                         example, causes 3,000 premature deaths,                           with other state and local programs
                         2,000 hospitalizations for respiratory                          • Continuous improvement of LMI-related
                         and cardiovascular diseases, and 6,000                            initiatives by tracking progress (e.g.,
                         emergency department visits for asthma                            households served, costs, and savings)
                         annually.5 Policies that advance efficiency                       and modifying initiatives to maximize
                         and electrification mitigate these problems.                      benefits and minimize costs

                         Equity                                                          Resilience and Security
                         Benefiting LMI communities. The CLCPA                           Climate resilience. These policies
                         explicitly states that at least 35% of the                      advance climate resilience for New York,
                         benefits of spending on clean energy and                        which, like many places around the
                         energy efficiency must go to disadvantaged                      world, faces worsening climate impacts.
                         communities. Examples of equity benefits                        Extreme weather, sea level rise, increased
                         of the CLCPA and related New York energy                        temperatures, air pollution, and health
                         policies include:                                               effects are already being experienced and
                                                                                         are of particular concern.
                         • Providing bill payment assistance/
                           discounts through the Low-Income                              Community resilience. These policies
                           Affordability Program                                         advance community resilience by
                         • Conducting energy literacy outreach,                          providing career opportunities in
                           education, and awareness campaigns                            marginalized communities.
                           through a customer hub
                         • Increasing access and affordability of key
                           technologies (e.g., efficiency technologies,
                           heat pumps, renewables)

                         5 Kheirbek, Iyad, Katherine Wheeler, Sarah Walters, Grant Pezeshki, and Daniel Kass. 2011. Air Pollution and the Health
                           of New Yorkers: The Impact of Fine Particles and Ozone. New York City Department of Health and Mental Hygiene.
                           https://www1.nyc.gov/assets/doh/downloads/pdf/eode/eode-air-quality-impact.pdf.

30   Regions Take Action: The Benefits of Major Climate Policies
Carbon-Free Buildings
Building policy can create equity.
Estimated Average Annual Job and Income Benefits of
the CLCPA, Total and to Disadvantaged Communities6

        150,000                          $11.3 billion                            CLCPA
        jobs created                     finance generated                        Total

         53,000                             $4 billion
        jobs created                             finance
                                                generated                         35%
                                                                                  of total benefits
                                                                                  to disadvantaged
                                                                                  communities

Note: The CLCPA requires that at least 35% of the benefits from spending on clean
energy and energy efficiency go to disadvantaged communities.

6 Total jobs created and income generated based on Demos policy brief (The Climate and Community
  Protection Act). Jobs and income going to disadvantaged communities extrapolated by multiplying Demos
  figures by the CLCPA requirement that 35% of spending benefits disadvantaged communities. Jobs created
  and income generated apply to direct and indirect employment only.

                                                                                                           31
New York Resources
                         New York Climate Leadership and Community Protection Act7

                         The following resources relate to key building sector policies that interface
                         with the CLCPA:

                         “Governor Cuomo Announces Additional                                    Toward a Clean Energy Future:
                         $2 Billion in Utility Energy Efficiency                                 A Strategic Outlook 2020-202310
                         and Building Electrification Initiatives
                         to Combat Climate Change”8                                              New Efficiency: New York11

                         “In the Matter of a Comprehensive Energy                                NYS Clean Heat: Statewide
                         Efficiency Initiative”9                                                 Heat Pump Program
                                                                                                 Implementation Plan12

                         7 Bill No. A08429. 2019. New York State Assembly. https://nyassembly.gov/leg/?default_fld=&leg_
                           video=&bn=A08429&term=2019&Summary=Y&Actions=Y&Text=Y.
                         8 New York State. 2020. “Governor Cuomo Announces Additional $2 Billion in Utility Energy Efficiency and Building
                           Electrification Initiatives to Combat Climate Change.” News release, January 16, 2020. https://www.governor.ny.gov/
                           news/governor-cuomo-announces-additional-2-billion-utility-energy-efficiency-and-building.
                         9 “In the Matter of a Comprehensive Energy Efficiency Initiative.” 2020. Matter no. 18-00381. New York State
                           Department of Public Service. http://documents.dps.ny.gov/public/MatterManagement/CaseMaster.
                           aspx?Mattercaseno=18-M-0084.
                         10 NYSERDA (New York State Energy Research and Development Authority). 2020. Toward a Clean Energy Future: A
                            Strategic Outlook 2020–2023. https://www.nyserda.ny.gov/-/media/Files/About/Strategic-Plan/strategic-outlook.pdf.
                         11 NYSERDA (New York State Department of Public Service). 2018. New Efficiency: New York, New York.
                            https://www.nyserda.ny.gov/-/media/Files/Publications/New-Efficiency-New-York.pdf.
                         12 NYS Clean Heat: Statewide Heat Pump Program Implementation Plan. 2020. New York State Energy Research and
                            Development Authority, Central Hudson Gas & Electric Corporation, Consolidated Edison Company of New York, Inc.,
                            Niagara Mohawk Power Corporation d/b/a National Grid, New York State Electric & Gas Corporation, Orange and
                            Rockland Utilities Inc., Rochester Gas and Electric Corporation, 2020. http://documents.dps.ny.gov/public/Common/
                            ViewDoc.aspx?DocRefId=%7b4DCD9A46-A766-4AEC-9D11-B042B4905251%7d.

32   Regions Take Action: The Benefits of Major Climate Policies
Carbon-Free Buildings
Broader View
Policy solutions for modernizing buildings are relevant across the globe but can vary
depending on climatic, infrastructure, economic, and political contexts. Many cities
around the world—New York City; Vancouver, Canada; and Vienna, Austria, to name
just a few—are leading the charge to modernize their building stock. However, cities
and states must work together to align as closely as possible on goals, policies, and
building codes.

We are adding to the planet the                              Building sector policies also have the
equivalent of another New York City                          potential to work synergistically to
every month.13 Emerging economies                            advance progress in other sectors.
are driving this massive boom in new                         For example, policies that promote
construction, and these regions may                          the use of low-carbon building
drive significant progress by focusing                       materials or access to electric vehicle
on building sector policies that facilitate                  charging at certain buildings can
carbon-free new construction.                                create jobs in upstream manufacturing
                                                             or service industries.
On the other hand, over 80% of buildings
that will exist in 2030 are already built.14                 There is not a one-size-fits-all policy
Regions with a higher proportion of                          framework. In certain contexts, such
existing building stock compared with                        as New York, jurisdictions can pursue
new development, including many                              building strategies within a larger
developed countries, may do well                             agenda that accomplishes other
to focus on policies that improve the                        interconnected social, economic, and
performance of existing buildings.                           environmental goals. Alternatively,
                                                             building sector policies can be
Furthermore, as building systems and                         implemented through targeted
technologies are evolving, policymakers                      legislation, executive action, existing
are faced with a growing list of options                     regulatory authority, or other means,
to consider. For example, in some cases,                     depending on the jurisdiction’s political
hydrogen may be a viable alternative                         context and priorities.
fuel for buildings.15 Nevertheless, as the
electric grid gets cleaner, whether it
be through electrification of buildings
or use of renewable hydrogen in
buildings, policies that support carbon-
free buildings provide a pathway for
improved health, economic benefits, and
carbon emissions reductions.

13 Architecture 2030. n.d. “New Buildings: Operational Emissions.” Accessed July 13, 2020. https://
   architecture2030.org/new-buildings-operations/.
14 Bradtner, Stefanie. “The Global Building Stock Is Expected to Exceed 183 Billion Square Meters in 2026.”
   Guidehouse Insights, April 26, 2018. https://guidehouseinsights.com/news-and-views/the-global-building-
   stock-is-expected-to-exceed-183-billion-square-meters-in-2026.
15 Fuel Cells and Hydrogen Joint Undertaking. 2019. Hydrogen Roadmap Europe: A Sustainable Pathway for
   the European Energy Transition. https://www.fch.europa.eu/sites/default/files/Hydrogen%20Roadmap%20
   Europe_Report.pdf.

                                                                                                        33
34   Regions Take Action: The Benefits of Major Climate Policies
Healthy
Transportation
By creating better mobility
options and electrifying vehicles,
air pollution can be reduced while
giving people more choices for
transportation.

                                     35
Healthy
                         Transportation
                         The transportation sector is a primary          EVs also offer economic advantages for
                         contributor to air quality, economic,           drivers. Given the comparatively lower cost
                         and climate concerns, but recent                of electricity, EVs are considerably cheaper
                         advancements in vehicle electrification         to operate than vehicles fueled by petrol,
                         show great potential for eliminating the        gasoline, and natural gas. These lower
                         negative impacts of petroleum-fueled            operational costs enable EVs to achieve
                         cars and trucks. A little over 10 years ago,    a much lower total cost of ownership
                         electric vehicles (EVs) were nonexistent        than ICEs. These savings pass directly
                         in the global vehicle market. Today, they       to drivers, easing the high cost of
                         account for 2.6% of global car sales and        transportation for many.
                         are continuing to capture significant
                         market share; in 2019, global EV sales          Transportation accounts for 24% of global
                         registered a 40% increase over 2018.            energy–related CO2 emissions.1 In many
                         Many experts anticipate EV sales to             locations, transportation’s share of the
                         overtake internal combustion engine             problem continues to grow. Vehicle
                         vehicles (ICEs) by 2030.                        ownership and demand are climbing in
                                                                         developing nations, with carbon-intensive
                         EVs offer significant health benefits over      vehicles claiming the lion’s share of the
                         ICEs. Having no tailpipe, EVs produce           vehicle market. The commercial market, too,
                         considerably lower levels of volatile organic   poses significant challenges, as freight and
                         compounds (VOCs), sulfur oxides (SOx),          delivery services are producing increasing
                         nitrogen oxides (NOx) and particulate           amounts of carbon emissions.2
                         matter (PM2.5 and PM10), which makes
                         them a clear part of the solution to            Subnational governments can unlock a
                         transportation-related health concerns.         broad set of benefits if they employ a
                                                                         comprehensive approach to decarbonizing
                                                                         mobility. Though the following case study
                                                                         focuses on the very important approach of
                                                                         electrifying vehicles, policymakers should
                                                                         also consider measures for reducing
                                                                         dependence on personal vehicles,
                                                                         expanding nonmotorized transportation
                                                                         infrastructure, and creating car-free
                                                                         districts. Together, these measures will
                                                                         lead to a cleaner, healthier, and better
                                                                         quality of life.

                                                                         1 IEA (International Energy Agency). n.d. “Transport:
                                                                           Improving the Sustainability of Passenger and
                                                                           Freight Transport.” Accessed August 5, 2020.
                                                                           https://www.iea.org/topics/transport.
                                                                         2 Scott, Mike. 2019. “Shipping Sector Comes Under
                                                                           Increasing Pressure to Cut Its Carbon Footprint.”
                                                                           Forbes, June 28, 2019. https://www.forbes.com/
                                                                           sites/mikescott/2019/06/28/shipping-sector-
                                                                           comes-under-increasing-pressure-to-cut-its-
                                                                           carbon-footprint/#3363789c1487

36   Regions Take Action: The Benefits of Major Climate Policies
Healthy Transportation
Hawaii, USA

              Leadership in Action
               Delhi, India: EV Policy

              The Delhi EV Policy, passed in              Delhi’s policy covers a wide array
              December 2019 and enacted in                of vehicle types, with incentives for
              August 2020, is arguably the most           electric two-wheelers; shared transport
              comprehensive subnational policy of         vehicles, such as three-wheelers and
              its kind. With a strong focus on demand     buses; as well as goods carriers and
              creation, the policy calls for 25% of all   freight vehicles. These other vehicle
              new vehicles to be battery operated         types produce tremendous amounts
              by 2024. This target is estimated to        of air pollutants and carbon emissions.
              amount to 500,000 EVs and 4.82 million      For instance, two-wheelers and three-
              tons in CO2 emissions savings.              wheelers contribute about 75% of the
                                                          vehicular PM5 emissions in Delhi,
              While many subnational EV policies          which is equal to the total amount of
              around the world have chosen to focus       pollution from trucks and eight times
              on four-wheeled personal vehicles,          that of buses.

                                                                                              37
Key Milestones                                                Delhi realizes the potential of EVs
                                                              Through a series of stakeholder workshops and
                                                              analyses, the Delhi government identifies EVs
                                                              as a key solution to the problem. There was
                                                              an understanding within the government that
                                                              policy could accelerate the transition to EVs.

 Awareness of air pollution increases                                                      Leaders formulate draft policy
 Understanding the threats to quality of                                                   The Delhi government develops a
 life and public health, the government                                                    policy for consideration by cabinet
 of Delhi seeks to develop a policy that                                                   ministers and various stakeholders.
 combats vehicles’ contribution to air                                                     The policy focuses on electric two-
 pollution. Studies indicated that 30%                                                     wheelers, shared transport vehicles,
 of the particulate matter in Delhi is                                                     goods carriers, and freight vehicles.
 emitted from tailpipes.

           Driving Forces
           The Delhi EV Policy provides the following
           incentives and policies by vehicle type:

                   Two-Wheelers                                                       Electric Autos,
                   • Purchase incentive of 5,000 Indian rupees (INR)                  Rickshaws, and Carriers
                     per kilowatt-hour (kWh) of battery capacity.                     • Purchase incentive of 30,000 INR
                   • “Scrapping incentive” of 5,000 INR for the                       • Interest reduction of 5% on loans
                     scrapping and deregistration of an old internal                    for the purchase of electric autos
                     combustion vehicle. The incentive is subject to
                     a matching contribution made by the dealer at
                     the time of the sale.
                   • Mandate that all companies providing
                     last-mile deliveries must transition 50% of
                     their two-wheeler fleet to electric by March
                     2023 and 100% by March 2025.

38   Regions Take Action: The Benefits of Major Climate Policies
Healthy Transportation
                 Policymakers engage stakeholders
                 The draft policy is put forward for discussion among
                 various stakeholders representing government
                 agencies, industry, civil society, and academia.
                 An estimated 300 stakeholders participate in the
                 process and provide feedback on the draft policy.

                                         Government enacts policy
                                         The final policy emerges as a highly
                                         comprehensive set of demand incentives aimed at
                                         making EVs affordable. The policy also provides
                                         several non-fiscal incentives, such as waivers on
                                         road tax, registration, and parking fees.

Four-Wheelers                                         The Delhi EV Policy also includes
                                                      incentives for the expansion of
• Purchase incentive of 10,000 INR per
                                                      charging infrastructure. To that end,
  kWh of battery capacity
                                                      the government has committed to
                                                      providing accessible charging or battery
Buses                                                 swapping facilities within 3 kilometers’
• Commitment that electric buses must                 travel of anywhere in Delhi. To ensure
  account for 50% of all new buses in the             this expansion, the Delhi government will
  fleet of the government of the National             subsidize the cost of installation.
  Capital Territory of Delhi

                                                                                                  39
Vehicle demand generation
                                              The Delhi EV Policy provides motivation in the form of up-front purchase
                                              incentives, loan interest waivers, and a “scrapping bonus” that serves as
                                              payment for retiring an internal combustion vehicle. The incentives help EVs
                                              achieve cost parity with ICEs. In addition, the policy includes a number of non-
                                              fiscal incentives, such as waivers on road tax, registration, and license fees.

     Keys to
     Success
                                                                                   Demand assurance to industry
     The Delhi EV initiative                                                       The policy sends a clear signal to industry
     has seen mounting                                                             that EV market is viable and here to stay.
                                                                                   By incentivizing demand across all vehicle
     success as a result of                                                        types—two-wheelers, three-wheelers,
     the following factors:                                                        and four-wheelers—the Delhi EV Policy
                                                                                   raises the visibility of electrification and
                                                                                   invites industry participation.

                                                                                                Charging infrastructure
                                                                                                expansion
                                                                                                Delhi offers a host of incentives for
                                                                                                charging infrastructure as well as
                                                                                                reduced-rate tariffs that further
                                                                                                improve the cost-effectiveness of
                                                                                                owning and operating an EV.

                                                                                        Skills training
                                                                                        Innovative jobs and skills training
                                                                                        programs provide hands-on education
                                                                                        and training for charging station
                                                                                        operators, technicians, and drivers.

40   Regions Take Action: The Benefits of Major Climate Policies
Healthy Transportation
Benefits
Economic Development                                         Health
Cost savings. Delhi’s transition to                          Air quality. The Delhi EV Policy is directly
EVs will produce significant individual                      aimed at improving air quality. Delhi is
cost savings and community-wide                              well known for its air quality problems,
economic benefits.                                           and vehicles play a significant role in
                                                             those problems, contributing up to 40%
Efficiencies. Analysis conducted by RMI                      of PM5, 20% of PM10, and more than 80%
finds that the EVs sold through 2024 will                    of NOx, CO, and non-methane volatile
require 120.8 petajoules less energy than                    organic compounds (NMVOCs). 4
an equivalent ICE, which in turn will save
$865 million. 3                                              Emission reductions. Analysis suggests
                                                             that the Delhi EV Policy will offset 159
Economic stimulus. Those funds                               tons of PM2.5 tailpipe emissions by 2024.5
effectively act as a large economic                          Commercial drivers and citizens most
development stimulus into the region.                        exposed to vehicular emissions will see
Further, the Delhi government intends                        direct and near-term improvements to
to attract significant investment from                       health and quality of life.
a variety of industries, including
automotive manufacturers, electric                           Reduced exposure to pollutants. Drivers
distribution companies, charging station                     of Delhi’s omnipresent green and yellow
providers, financing services, and others,                   autos and other carriers will have the
which will help further the advancement                      opportunity to purchase a clean, zero-
of the EV market. Together, these                            emissions vehicle at a steeply discounted
entities will provide jobs and improve                       price and in turn significantly reduce
the Delhi economy.                                           their exposure to harmful pollutants.

3 Dialogue and Development Commission of Delhi and Rocky Mountain Institute. 2019. Accelerating Delhi’s
  Mobility Transition: Insights from the Urban Mobility Lab in Delhi. Rocky Mountain Institute. https://rmi.org/
  insight/urban-mobility-lab-delhi/.
4 Suneja, Dimpy. 2020. “Delhi’s Electric Vehicle Policy: Will It Be a Game Changer.” Rocky Mountain Institute.
  January 17, 2020., https://rmi-india.org/delhis-electric-vehicle-policy-will-it-be-a-game-changer/.
5 Ghate, Akshima. 2019. “Delhi EV Policy: Govt Lays Foundation for a Clean Mobility Future.” Rocky Mountain
  Institute. December 28, 2019. https://rmi-india.org/delhi-ev-policy-govt-lays-foundation-for-a-clean-
  mobility-future/.

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