11/02/2020

LCA Climate Change Initiaives

Louisiana Chemical Association

Climate Change Policy Principles

The risks of climate change are a global issue that requires action by all members of society. The Louisiana Chemical Association (LCA) and its member companies are committed to finding real solutions both to reduce greenhouse gas (GHG) emissions in their operations and to protect the jobs that the chemical industry supports throughout the state. LCA and its member companies support state and federal policies and initiatives on climate change that are aligned with the following principles:

1. Based in science. The Intergovernmental Panel on Climate Change (IPCC) reports that climate change is “unequivocal.” The IPCC further provides that global temperature rise is likely to cross 2° Celsius (°C) above pre-industrial levels by the end of the century if it remains unmitigated. LCA acknowledges the science on climate change. Emissions reduction policies should involve the scientific community and the resultant recommendations should be technologically and economically reasonable.
2. Support the objectives of the Paris Climate Agreement. The Paris Agreement aims to limit global temperature rise to well below 2˚C above pre-industrial levels, while pursuing means to limit the increase to 1.5˚C, in order to strengthen the global response to the threat of climate change.
3. Keep Louisiana’s chemical industry competitive. Climate policies must protect Louisiana chemical manufacturers’ ability to attract major investment opportunities that bring high-salaried jobs and beneficial tax base. Policymakers must recognize the importance of global and national-level action to achieve climate objectives and that Louisiana can take positive actions to support investment in and the movement towards newer, low- and lower-carbon energy choices within Louisiana, while protecting the ability of Louisiana industry to compete in the global economy. Climate change policy, whether adopted at the federal or state level, should enable a level playing field for LCA members and prevent international and interstate emissions and economic leakage.
4. Develop low- and lower-carbon energy choices through development of innovative products and technology. Low- and lower-carbon energy choices should be part of the solution to reduce GHG emissions without impairing competitiveness. Low- and lower-carbon energy solutions can be achieved through energy efficiency, transitioning to natural gas, use of renewable energy, utilization of carbon capture, utilization and storage, and by embracing new and developing technologies. Further, there must be investment in research aimed at not only finding lower carbon energy options, but also finding ways to make those options more readily available. There must be evaluation of and/or investment in technology so society is not faced with the harmful effects of climate change.
5. Recognize that the transition to lower-carbon energy options and economy requires patience. The transition to a lower-carbon energy future is necessary to address the risks of climate change. However, while the urgency to reduce GHG emissions is understandable, to achieve meaningful reductions, there needs to be proper funding and resources for a successful transition. The concept of Just Transition considers the imperatives of a transitioning workforce during the shift to a low-carbon technology and in the creation of decent work and quality jobs in accordance with nationally defined development priorities. National and state governments, industry, trade associations, and the public must collaborate to create plans and policies that are necessary for a just transition to lower carbon emissions.
6. Recognize and account for early actions to reduce GHG emissions and to make allowances for fixed-process emissions. Many companies have taken early climate action as part of their own environmental stewardship. By lowering their emissions early, prior to potential regulation, those companies may have less ability to reduce emissions even further when emissions reductions may become mandatory. Other companies may also use processes that have fixed emissions that will be difficult or cost prohibitive to lower emissions further and may need alternative approaches like purchasing offsets or the development of new technologies. Good climate policy recognizes and takes such situations into account and does not penalize companies for taking early action or for utilizing processes with fixed emissions levels.
7. Support carbon pricing. LCA supports a market-based, national-level emissions reduction strategy with transparent and predictable price signals that will facilitate lower GHG emissions. The complexity and administrative costs of climate policy must be minimized to the fullest extent possible. Market-based carbon pricing should be an economically efficient policy to transition to lower carbon choices. Carbon pricing, which is most appropriately implemented at the federal level but if implemented at the state level, should be designed to avoid emissions and investment leakage.
8. Encourage carbon capture, utilization, and storage (CCUS). CCUS is a combination of technologies to capture, utilize, and/or store carbon dioxide (CO2), preventing its release into the atmosphere. As of now, this is a leading method for the storage and utilization of hard to abate emissions. Therefore, CCUS technologies offer an important way by which to achieve significant CO2 emissions reduction. CCUS may be bolstered through supportive government policies, including in expanding regional infrastructure development.
9. Exempt minimal to no-GHG emitting feedstocks. The chemical industry relies on essential and cost-sensitive feedstocks such as natural gas, natural gas liquids, hydrogen, and others, as well as processes, that result in minimal or no GHG emissions. The manufacture and use of such feedstocks and processes should be exempted from climate policies.

LCA CLIMATE CHANGE POLICY POSITIONS

LCA has adopted a set of climate change principles to guide advocacy on government policies intending to reduce greenhouse gas emissions and help combat climate change. The key policy positions follow:

Principle	Aligned?	Short Description
Supports climate science	Yes	The risks of climate change are a global issue that requires action by all members of society. Emissions reduction policies should be based on sound science and the resultant recommendations should be technologically and economically reasonable.
Supports the objectives of the Paris Agreement	Yes	The Paris Agreement memorializes the need for society to act to limit global temperature rise to well below 2 degrees Celsius above pre-industrial levels, while pursuing means to limit the increase to 1.5 degrees Celsius, in order to strengthen the global response to the risks of climate change.
Supports keeping Louisiana’s chemical industry competitive	Yes	Climate policy must protect the ability of the Louisiana chemical industry to compete in the global economy. Climate change policy, whether adopted at the federal or state level, should enable a level playing field for LCA members and prevent international and interstate emissions and economic leakage.
Supports development of low- and lower-carbon energy choices (energy efficiency, natural gas, renewable energy, CCUS)	Yes	Climate policy must embrace low- and lower-carbon energy choices as part of the solution to reduce GHG emissions without impairing competitiveness. There also needs to be proper policies, funding, and resources for a transitioning workforce during the shift to lower-carbon energy choices and in the creation of decent work and quality jobs.
Recognizes early climate action taken and makes allowances for fixed-process emissions	Yes	Good climate policy does not penalize companies for having taken early climate action as part of their own environmental stewardship. Good climate policy also does not penalize companies for employing processes that have fixed emissions that will be difficult or cost prohibitive to lower further.
Supports carbon pricing	Yes	LCA supports a market-based, national-level emissions reduction strategy with transparent and predictable price signals that will facilitate lower GHG emissions. Market-based carbon pricing should be an economically efficient policy to transition to lower carbon choices. Carbon pricing should be designed to avoid emissions and investment leakage.
Supports exempting minimal to no-GHG emitting feedstocks	Yes	The manufacture and use of essential and cost-sensitive feedstocks such as natural gas, hydrogen and others that the chemical industry relies on as well as processes that result in minimal to no emissions of GHGs should be exempted from climate policies.