For additional information, please call the toll-free EXECUTIVE SUMMARY In partnership, American organizations, businesses, consumers, and the Climate Protection Division (CPD) of the US Environmental Protection Agency (EPA) are successfully reducing emissions of greenhouse gases (GHGs) that contribute to global climate change. Through voluntary programs that promote cost-effective energy efficiency and GHG emissions reductions, the Division forges partnerships with private and public organizations. These partnerships capitalize on the nation's technological creativity. They are transforming markets by enhancing demand for energy-efficient products and services across all sectors of the economy, driving investment in energy efficiency, and saving consumers and organizations money on energy bills. Many of the improvements catalyzed by the partnerships will provide both environmental and economic benefits for the next 10 to 20 years. The Climate Protection Division continues to have great success with its partnership programs. In 1998, the Division exceeded its key goal-the Climate Change Action Plan (CCAP) carbon-reduction goal of 14.6 million metric tons of carbon equivalent (MMTCE). The Division remains on target to meet its goal for 2000 (see Figure ES1). This annual report summarizes the environmental and economic results from the partnership programs of the Climate Protection Division through the end of 1998: ENERGY STAR Buildings and Green Lights® ENERGY STAR®-Labeled Products Methane Partnerships Environmental Stewardship Programs The major economic and environmental achievements across these voluntary programs through 1998 include the following: • Annual reductions of GHG emissions totaled 17 MMTCE' in 1998—a 40-percent increase over the 1997 emissions reductions. • Sulfur dioxide (SO2) emissions were reduced by about 130,000 tons in 1998, while emissions of nitrogen oxides (NO,) were reduced by about 70,000 tons. • Cumulative investment in energy-efficient technologies exceeded $4 billion. · • Cumulative energy bill savings for consumers and businesses amount to more than $18 billion. • The cost of the Division's voluntary programs to the government continues to • The net increase in economic activity (in effect, the amount of cash added to the Some of the key accomplishments of CPD's programs in 1998 include the following: • More than 1,200 manufacturers produced a total of 3,400 individual product models • Over 900 partnerships achieved reductions of non-carbon dioxide (CO1) gases— methane, perfluorocarbons (PFCs), hydrofluorocarbons (HFCs), and sulfur hexafluoride (SF)—totaling more than 10.5 MMTCE. 1 Reductions in annual greenhouse gas emissions for all CPD programs, including non-CO, gases, are expressed in "carbon equivalents" as defined by the Intergovernmental Panel on Climate Change (IPCC). The Division's partnership programs reduce GHGs by promoting cost-effective, energy- enhance economic activity. Environmental and These locked-in benefits through 2015 total: • Energy bill savings. $18.8 billion in bill savings from completed projects and an additional $23.9 billion in bill savings from partner commitments to additional projects. • Technology investments. S4.1 billion in technology expenditures on completed projects and an additional $4.8 billion in technology expenditures from partner commitments to additional projects. • Economic activity. A $14.6 billion net increase in economic activity from completed projects and an additional $19 billion net increase in economic activity from partner commitments to additional projects. Figures ES2 through ES5 show the distribution of these benefits across the voluntary partnership programs. The partnership programs continue to successfully leverage investments in energy efficiency by providing their partners with information, motivation, and tools to help them choose better investments. EPA does not provide financial subsidies to its partners. Millions 1998 MMTCE $16,000 $14,000 Figure ES2. Total GHG emissions ENERGY STAR ENERGY STAR Methane Industrial Completed Committed Source: EPA Climate Protection Division Figure ES3. Total energy bill savings to 2015 Buildings and Completed Committed Source: EPA Climate Protection Division |