Compact Quarterly: Why is the cross-sector nature of the BC3 initiative so important for advancing public efforts to protect the environment?

Jared Blumenfeld (JB): There is a considerable amount that government can and should do to reduce greenhouse gas (GHG) emissions. But, it always comes down to implementation. Internationally, there are more than 400 treaties related to environment. Often, people feel that if there is a treaty then something is being done. The reality is that there is a big implementation gap between what is agreed to in treaties and what is actually happening at the grassroots level. People tend to think of GHG emissions as a global issue, when actually it is a local issue all around the world.

If you consider that cities emit about 75 percent of the world’s CO2, it is not surprising that they must play a pivotal role. 2005 marked the first time in human history that more people lived in cities as opposed to rural areas. That year, San Francisco hosted UN World Environment Day with the theme of “Green Cities: where the future lives”. We had mayors from the 70 largest cities on the planet in attendance. Today, over 100 cities have signed “The Urban Environmental Accords” which came out of that event.

In San Francisco, we have worked for decades with the private sector on the issues of energy, transportation, recycling, as well as many others from green buildings to clean fuels. But BC3 will serve as a catalyst to engage business at a higher level on climate change. For instance, we often meet with building, construction and architecture firms and developers to question how we can design the best green building program. Now, instead of only creating mandates, we have developed an incentive-based program that creates a fast-track permitting process for developers that want to use high standards and LEED, which is a program of U.S. Green Building Council. Essentially, they will have the opportunity to jump to the front of the planning and building inspection line, saving them millions of dollars over the period of the project.

Another example is the need to better understand how businesses inventory their GHG emissions. This can be useful when there are countless methodologies and incredibly varying scales of detailed information provided in these reports. Just developing consistent standards in the San Francisco Bay Area could help address current challenges and expenses. We are committed to working with companies to create solutions that work for the city as a whole.

CQ: What do you feel is the best role for a voluntary initiative, such as BC3, in the broader regulatory environment related to climate change?

JB: Let’s be clear that although BC3 is a voluntary initiative, it is not about choosing between voluntary and mandatory programs. Many of the BC3 signatories are strong advocates for mandatory regulations and believe we need a carbon trade program. The point is that even if we do have a mandatory carbon trade program, there is a need for a mechanism that allows business to share best practices and creative solutions, as well as develop a working relationship between business and government to ensure that the implementation of regulations is done effectively. For this reason, BC3 becomes even more important in the context of mandatory regulation.

What we have seen is that in order to move the climate change issue along in San Francisco – by which I mean getting real reduction in CO2 emissions from area businesses – the private sector needs to better understand what it means to reduce CO2 and understand how other businesses have succeeded and failed in trying to do so. Currently, there is a disconnect between government programs developed to help business with climate issues and the business community’s knowledge of those programs. BC3 hopes to fill that gap. For example, many businesses do not know that there are financial programs to help with everything from energy efficiency to renewable energy or transportation demand management. There are literally billions of dollars available to help companies do this, but too often business is unaware.

CQ: How will the city help bridge this knowledge gap and support the efforts of BC3 participants?

JB: There are two main ways we plan to help: by creating a network among businesses and also a network between business and government. Ultimately we are hoping to level the playing field so that all companies become climate leaders in San Francisco. What we currently see is that some companies are doing all that they can to be environmentally sensitive, yet feel they have a competitive disadvantage because the laggards at the bottom end of climate curve are not being forced to take action.

One thing we plan to do is to help connect businesses with incentives. For example, we are running a direct-install energy efficiency program and have $11.5 million available to help businesses in San Francisco reduce energy demand. We are also working to create mandates around energy efficiency levels in different types of buildings, whether new construction or older buildings. Tightening building codes by internalizing some of the green building principles will help level the playing field.

For companies that are already taking a leadership role, we want to help them gain access to expertise. And a lot of expertise already exists within the BC3 companies. One example is Gensler, a founding BC3 member which is a large architecture firm and a leading practitioner of green building. The company can offer real assistance to other companies in the network on how to design a green office. Another BC3 member, Pacific Gas and Electric (PG&E), runs many energy efficiency and renewable energy programs. For example, PG&E has just announced a plan to put 500 solar panels on the San Francisco Giants’ baseball stadium, making it the greenest national baseball league stadium in the US.

We also plan to show the business community some of the things that the city’s done well. For example, we have a thousand alternative fuel vehicles in our city fleet. We have spent 15 years doing alternative fuel vehicle work and plan to share our learnings with business. Another example relates to the city’s high 69 percent recycling rate. A lot of companies know they can do better in this area and we will send consultants to the companies to help plan their waste.

CQ: What can the San Francisco do to ensure the success of the BC3 partnership and build a strong case for its replication globally?

JB: There was a huge degree of excitement about BC3 from other cities immediately. People are watching to see what will happen with BC3, and anticipating how they can replicate it. We already have received calls from Shanghai to London. The most important thing is to make it work here. We want to iron out any issues, from figuring out the structure and how the advisory committee works to funding issues.

Every city knows – or should know – that it needs to take action. Some have more history and experience in the issue of climate; others are just starting. Wherever cities fall on this continuum, they need to think about bringing the business sector into public projects. It is a critical dynamic when dealing with the complex, complex issue of climate change.

CQ: As more initiatives like BC3 emerge around the world, do you feel that it will put more pressure on companies that have previously fought change to take action on climate issues?

JB: I think the greener that business actually becomes – not just “talking” green but acting green – then the more it will make the laggards appear as they are. In any kind of movement or revolution, the leaders bring into high contrast those that are doing nothing. It sends a stark signal to politicians and the business community when conservative businesses such as Merrill Lynch and others come forward to state that we all must take action on climate change. With BC3, we hope that by helping move the advanced-thinking businesses forward, we also will bring up the bottom. Or at least make them think they really need to do something.

Learn more about the BC3 inititiave and the Principles on Climate Leadership.