OPIC ANNOUNCES GREENHOUSE GAS INITIATIVE
Thursday, June 14, 2007
OPIC ANNOUNCES GREENHOUSE GAS INITIATIVE CAPPING EMISSIONS ON NEW PROJECTS, SHIFTING EMPHASIS TO RENEWABLE ENERGY
Goal to reduce emissions by 20 percent in ten years;
agency to enhance project accounting and reporting
WASHINGTON, D.C. – The Overseas Private Investment Corporation (OPIC) will work to reduce greenhouse gas emissions in OPIC-supported projects by 20 percent in the next ten years and shift emphasis to renewable and energy-efficient projects, according to a new initiative announced today by OPIC President and CEO Robert Mosbacher, Jr.
To meet the portfolio reduction target of the OPIC Greenhouse Gas Initiative, OPIC is establishing an annual emissions cap for all new greenhouse gas emissions in OPIC supported projects to which the agency provides a commitment. The cap will be equivalent to the emissions from projects committed to by OPIC in fiscal year 2007, estimated to be between two and three million tons CO2eq (see below). If met, the goal will result in a reduction in emissions from 54.7 million tons of CO2eq in OPIC’s current portfolio of OPIC supported projects, to a cap of 44 million tons in 2016.
On a project basis, OPIC will work with the private sector to encourage U.S. investment in renewable energy and energy efficiency improvement projects through the application of market-based incentives. OPIC will consider emission reduction alternatives for all OPIC-supported projects, including opportunities to enhance energy and operational efficiency; and the application of new technologies for the capture, storage and recovery of greenhouse gases.
In the fourth part of the initiative, OPIC will enhance its accounting and reporting on greenhouse gas emissions, and on renewable energy and energy efficiency in the OPIC annual environmental report. Instead of aggregate emission reporting, OPIC will report annual emissions of each significant OPIC-supported project’s greenhouse gas emissions in the active portfolio as well as the projected emissions for each project receiving an OPIC commitment.
“A key part of the U.S. government’s work in developing a multilateral approach to climate change is to support policies and projects that help developing countries to meet their energy needs in the most environmentally responsible manner,” Mosbacher said. “The OPIC GHG Initiative moves in this direction by directly addressing emissions. And in partnership with the private sector, we can support the projects and clean technology that will provide energy, spur growth while protecting the environment in developing countries.”
Carbon dioxide equivalents (CO2eq) is a metric measure used to compare the emissions from various greenhouse gases based upon their global warming potential (GWP). The carbon dioxide equivalent for a gas is derived by multiplying the tons of the gas by the associated GWP. For example, the GWP for methane is 21 and for nitrous oxide 310. This means that the emissions of 1 million metric tons of methane and nitrous oxide respectively are equivalent to emissions of 21 and 310 million metric tons of carbon dioxide.
OPIC was established as an agency of the U.S. government in 1971. It helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers.
OPIC’s political risk insurance and financing help U.S. businesses of all sizes invest in more than 150 emerging markets and developing nations worldwide. Over the agency’s 35-year history, OPIC has supported $164 billion worth of investments that have helped developing countries to generate more than 732,000 host-country jobs and $13 billion in host-government revenues. OPIC projects have also generated $69 billion in U.S. exports and supported more than 264,000 American jobs.