Climate Week NYC produced three key developments regarding emissions reductions from the U.S EPA, U.S. Federal Courts and the Chinese Government, indicating that the world is indeed moving toward a low carbon economy. By Will Sarni

There was good news indicating that the public and private sectors are moving closer to addressing the need to reduce greenhouse gas emissions (GHGs) despite the weak progress at the G20 meeting last week and the overall lack of confidence that COP 15 will yield real results. Three key developments during Climate Week's (www.climateweeknyc.org) meaningful progress in reducing greenhouse gas emissions (GHGs) are highlighted below.

• US Environmental Protection Agency (USEPA) to start collecting greenhouse gas data on January 1, 2010
• States can sue utilities over greenhouse gas emissions
• China moves towards a commitment on reducing GHG emissions

The first development was that the USEPA would require large emitters to start collecting GHG data starting on January 1, 2010. Large emitters are defined as those industries that emit more than 25,000 tons of CO2 equivalent per year. This move by the USEPA will result in about 10,000 facilities in the US, which account for approximately 85 percent of the US GHG emissions, to measure and report on their GHG emissions - 2010 emissions will have to be reported in 2011.

Also, this requirement by the USEPA will likely be a key aspect of any GHG cap and trade program in the US (if Waxman Markey passes the US Senate).

The second major development was the overturning of an earlier ruling which opens up the opportunity for US States to sue utilities over GHG emissions. A federal appeals court in New York ruled on September 21, 2009 that states trying to reduce GHG can sue six utilities to force them to reduce GHG emissions. This appeals court overturned an earlier ruling brought by eight states (California, Connecticut, Iowa, New Jersey, New York, Rhode Island, Vermont and Wisconsin), New York City and three land trusts. The appeals court also ruled that the legislative branch can amend the Clean Air Act to regulate GHGs and that the executive branch can regulate GHGs through the USEPA. The appeals court wrote "the touchstone of a common law public nuisance action is that the harm is widespread, unreasonably interfering with a right common to the general public."

The Plaintiffs in the case want the utilities to reduce GHG emissions 3 percent annually for 10 years. The utilities named in the lawsuit are: American Electric Power Co. Inc., Cinergy Co., Southern Company Inc. of Georgia, Xcel Energy Inc. of Minnesota, and the Federal Tennessee Valley Authority.

And finally, the last major development this past week is global in scope. China pledged on September 23, 2009 that it would reduce GHG emissions in proportion to its economic growth (an intensity goal). While China is not agreeing to a numerical reduction in GHG emissions by a target date this is an important step forward. The announcement by China is to reduce GHG emissions by a "notable margin by 2020 from the 2005 level." It is also important to note that China has successfully reduced its energy use by more than 4 percent since the start of this year. This announcement is part of a plan that China will submit to the Chinese Cabinet prior to COP 15.

What does this all mean? To me, it is real progress in moving to a low carbon economy both in the US and globally.

I believe that the USEPA announcement will add incentive for the US Congress to pass climate change legislation this year in advance of the 2010 USEPA deadline. Moreover, the specter of litigation may compel utilities to begin meaningful efforts to reduce GHG emissions (increased renewables, carbon capture and storage, etc). In the US the threat of litigation usually gets company's attention.

And finally, China knows very well that the world is moving towards a low carbon economy. Consider China's real progress in the cleantech sector. China intends to dominate the global marketplace for solar technologies and electric vehicles and as a result China will push for a post Kyoto agreement to reduce GHG emission reductions during COP15. A global commitment to a low carbon economy will increase demand for low carbon industries such as wind, solar, energy storage, vehicles, etc. China will be well positioned to lead this transition.

Will Sarni is CEO of sustainability consulting firm DOMANI. Will has over 30 years of experience and has worked with high-profile companies such as Alcoa, BASF, Cisco, DIAGEO, and NTT DATA in developing and implementing cost-effective sustainability strategies. He is a member of the Environmental Compliance Committee of the Chicago Climate Exchange and the Conference Board. Read Will's blog here.