FOR IMMEDIATE RELEASE
Major Investors Applaud Move to Stay the Course on GHG Rules
Auto industry, consumers and economy benefit from GHG standards
In response to the Environmental Protection Agency’s announcement that it would stay the course on 2012 greenhouse gas (GHG) standards for automobiles and light duty trucks, major investors released statements supporting the decision:
Ken Locklin, director of Impax Asset Management and Stu Dalheim, vice president of Calvert Investments are members of the Investor Network on Climate Risk (INCR), a project of Ceres that represents more than $14 trillion in assets.
Ken Locklin, Impax Asset Management:
“These forward-looking GHG rules are creating new markets and driving innovation. Sticking to the path already set by the EPA and NHTSA is critical for maintaining growth across the automotive sector. By reducing risk for the Detroit Three and benefiting all their numerous suppliers, these standards are reenergizing a great American industry, and keeping it globally competitive.”
Stu Dalheim, Calvert Investments:
“Because consumer spending is the largest component of economic growth, savings at the pump translates into broad-based gains and job growth. The choice to stay the course toward more efficient cars and trucks will continue to strengthen our economy, save consumers money and create jobs – no matter what happens with gas prices.”
Carol Lee Rawn, Director of Ceres’ Transportation Program:
The decision to stay the course on GHG emissions standards will lock in growth for a vital manufacturing sector. The industry has been making significant investments in fuel savings technology for years thanks to these standards. Our research shows that suppliers—which employ 2½ times as many people as automakers, and who are making the bulk of investments in fuel-saving technology—stand to gain about $90 billion in increased orders through the life of the current rules.”
A Ceres analyst brief examining how automakers and suppliers would benefit under different gas price and emission stringency scenarios found that:
- Under current standards:
- The Detroit Three will be profitable given a wide range of fuel prices, even if gas prices fall as low as $1.80 a gallon.
- Suppliers, which provide two and a half times more American jobs than the top domestic automakers, stand to gain about $90 billion in increased orders.
- If standards are weakened and gas prices spike:
- Suppliers could lose up to $1.42 billion a year in sales of fuel-efficient technologies.
- The Detroit Three could lose over 300,000 vehicle sales and $1.08 billion in profits.
Citing the analyst brief, in September, Ceres’ Business for Innovative Climate and Energy Policy coalition, which represents businesses with more than $400 billion in annual revenue, submitted a letter to the Environmental Protection Agency and Department of Transportation supporting the standards.