Energy & Electricity

Major Climate Change Risks and Opportunities in the Forest Products Industry

Though the forest products industry as a whole may stand to gain, climate change will impact companies and investments differently based on the location of the forests, mills, and markets, the vertical integration of assets, and the sustainability of forest operations. This figure illustrates these risks and opportunities in a qualitative way with respect to their potential financial impact and the level of certainty.

United States Solar Radiation Map

Solar photovoltaic systems generate electricity using technologies that capture the energy in sunlight. Many parts of the United States—especially the Southwest—have abundant solar resources (see Figure 5, which shows estimates of the average daily total radiation for flat plate solar collectors). Before investing, however, firms should commission a thorough professional study of a specific site’s solar resources. Even if it reveals lower or moderate resources, solar power could still be financially attractive, depending on financial incentives and regulatory context.

United States Wind Resource Map

Wind energy systems generate electricity by using turbines to capture the wind’s energy. Many locations in the United States have good wind resources. Evaluating the quality of the wind resource at a specific site is critical to determining if it is suitable. Before making any investment decision, companies should commission a professional wind study, which evaluates the quality and consistency of a site’s wind resource potential.

Credit: National Renewable Energy Labs and WRI.

Coal, Oil, and Natural Gas Consumption by Country (Top 5) and by Sector, 2007-2008

COAL
The top 25 GHG emitting countries collectively account for approximately 92 percent of global coal consumption (BP, 2009). Coal mining and use is highly concentrated. Five countries account for nearly three-quarters of worldwide consumption. Unlike oil and to some extent natural gas, most coal is consumed domestically.

OIL

Energy Intensity in 2006 and Fuel Mix in 2007 for Selected Major GHG Emitters

Emissions intensity is a composite indicator of two other major factors contributing to a country’s emissions profile: energy intensity and fuel mix.

New Supercritical and Ultra-Supercritical Coal-Fired Power Plants Installed Annually by Capacity from 1959 to 2007

In 2008, China's National Development and Reform Commission adopted a standard requiring all new coal-fired power plants to be state-of-the-art commercially available or better technology. As a result, today most of the world’s most efficient (supercritical and ultra-supercritical) coal-fired power plants are being built in China.

Comparison of Chinese and U.S. Energy Statistics

Today, each Chinese citizen produces only one-fifth the GHG emissions of an average American consumer, and China still has many unmet energy needs. Most Chinese have a much lower standard of living than the average American. Half the Chinese population has no access to winter heating, and most have limited access to motorized transportation. Therefore, the challenge for China in the short term is to reduce the rate of growth of its GHG emissions as it strives to meet the growing energy demands of its people.

Energy Consumption by Sector in 2007: China, India, Japan, Russia, EU-27, and the United States

China’s energy mix is unusually tilted toward industrial uses, and thus improvements in the industrial sector have large overall impacts.

Chinese Coal Use by Sector in 2006

Over 50 percent of all China’s coal is used in the electric power industry. This electricity powers mainly industry but also households and the service sector.