TESTIMONY

by Kathryn S. Wylde, President and CEO
PARTNERSHIP FOR NEW YORK CITY

New York, New York
JANAURY 26, 2007

PDF 183K

Testimony Before the City Council Committee on Environmental Protection

Reducing Global Warming Emissions by 30% by 2030 in New York City

Good morning.  Thank you Chairman Gennaro and members of the committee for the opportunity to testify today.

The Partnership for New York City represents the city’s business leadership and its largest private sector employers.  It is committed to working in partnership with government, labor and the non-profit sector to enhance the economy and create jobs.

On behalf of the city’s business community, we strongly support the PlanNYC goal of reducing emissions that contribute to climate change by 30%. Many of our members are world leaders in efforts to combat global warming and are prepared to bring their expertise and technology to help the city achieve this goal.

Although action to address global warming is needed at all levels of government, local governments are perhaps best positioned to produce meaningful results. In 2005, 50 percent of the world’s population lived in cities and cities were responsible for a staggering 75 percent of global greenhouse gas emissions. Cities such as New York, therefore, must play a significant role in helping to reverse global warming.

City government has a significant program for reducing its own emissions underway. Similarly, the private sector has made strides, ranging from upgrading of energy production facilities to reduce emissions to the great new green buildings that have been developed by the Durst Organization for Bank of America, Tishman Speyer for Hearst, Battery Park City and others.

In addition to the environmental benefits of addressing the emissions problem, there are economic development opportunities as well. For example, finance experts agree that carbon trading is the next growth area within the commodities market, and demand for workers with expertise in energy and emissions trading is expected to expand. The question is not whether these jobs will be added, but where these workers will sit. London, the current hub for this trading, is positioning itself at the forefront of this new “low carbon economy.” There is already a voluntary carbon exchange in Chicago. New York State’s leadership on RGGI (Regional Greenhouse Gas Initiative) and New York City’s decision to s et a firm emissions reduction goal, set the stage for establishing a carbon trading market that can service domestic and international needs.

There are other economic development opportunities that we hope the city and state will pursue in connection with its sustainability initiatives.

It is our hope that New York will make a commitment to the emerging industries known as “clean tech” – including green building technology and products, alternative and renewable energy products, and various products and software systems that reduce consumption of fossil fuels. Earlier this month, the New York City Investment Fund, the economic development arm of the Partnership, published a report about opportunities to create jobs and businesses in the cleantech sector, which is already a $150 billion industry worldwide. New York has not kept pace with the nationwide growth of investment activity in this sector, and we could be left behind if we do not act quickly. The report suggests that New York City and State need to adjust their programs and policies, which have focused on incentives for reduction in consumption of energy. We need to create incentives for investors and entrepreneurs who are prepared to produce cleantech products and services. Hopefully, this is an area where New York City and State can collaborate on developing a new industry that benefits both the Upstate and Metro Area economies.

Two examples of companies that are at the forefront of New York City’s cleantech activity are Consumer Powerline, based in Manhattan, which is one of the nation’s largest providers of energy demand response solutions, and Solar Energy Systems, a Brooklyn based renewable energy company that designs and installs solar electric systems ranging from small 2KW residential systems to 50KW supplemental systems for commercial facilities.

In December 2006, the Partnership published a study on traffic congestion that concludes that existing transportation and road systems are inadequate to accommodate the region’s growing population and continued economic expansion. The result is that more than $13 billion in costs and 52,000 jobs are lost each year as a direct result of traffic congestion. Traffic reduction is a necessary component of any plan for reducing carbon dioxide emissions in the city. In London, where congestion pricing was introduced in 2003, carbon dioxide emissions have been cut by more than 15%.

On May 14-17, 2007, leaders of government and business from over thirty world cities will convene in New York for the second Large Cities Climate Summit. This historic event, organized by the Partnership and hosted by the City of New York with support from a group of private corporate underwriters, will bring together mayors and business leaders from the world’s largest cities. Delegates will exchange best practices, receive practical tools and strategic advice from experts, and chart collaborative courses towards addressing global warming in their cities. An emphasis will be placed on highlighting models of public-private cooperation that have helped various cities achieve emissions reduction targets while simultaneously stimulating economic growth.

As the City develops strategies to help reach this emissions reduction target, the Partnership looks forward to working closely with your committee, the entire City Council and the Bloomberg Administration to find solutions that deliver both environmental and economic benefits.

The Partnership for New York City (www.pfnyc.org) is a network of business leaders dedicated to enhancing the economy of the five boroughs of New York City and maintaining the city’s position as the global center of commerce, culture and innovation.