Massachusetts is a national hub for innovation in the technology, healthcare, and clean energy sectors. From world-class universities to a rapidly growing biotechnology industry and unparalleled healthcare sector, Bay State businesses and institutions are on the cutting edge. So, it comes as no surprise that a growing number of companies are investing in the rapidly growing clean energy sector and powering their operations with renewable energy and energy efficiency. As the businesses community embraces clean energy, Massachusetts must do its part to keep pace and strengthen the Commonwealth’s clean energy policies this legislative session.
In 2008, the Commonwealth set the stage for bold emissions reductions by passing the Global Warming Solutions Act (GWSA), which mandated that the state reduce greenhouse gas emissions by 25 percent by 2020 and by 80 percent by 2050. Since then, businesses and healthcare institutions have taken the lead when it comes to reducing emissions — meeting and even exceeding statewide targets set by the GWSA. A recent Ceres report shows a growing number of Massachusetts companies set goals to reduce carbon emissions and invest in renewable energy. Companies are making strides to achieve these goals through onsite projects, long-term power purchase agreements, and renewable energy credits that offset emissions.
For example, Partners Healthcare and Schneider Electric both set 100 percent renewable energy goals, while Eastern Bank has already achieved 100 percent renewable energy sourcing for all of its eligible branches and corporate offices. Partners Healthcare is also committed to improving the energy efficiency of its facilities and has reduced their overall energy consumption by 26 percent.These are just a few of the many companies investing in renewable energy and energy efficiency not only because it is the right thing to do, but because it makes economic sense. Clean energy investments directly impact companies’ bottom lines — helping to lower costs, reduce exposure to volatile fossil fuel prices, and stay competitive.
Last month, our three organizations joined these companies and several others on Beacon Hill to share with lawmakers the “bottom-line” benefits of clean energy and discuss how supportive clean energy policies can help drive economic growth and improve public health. Representing some of the Commonwealth’s largest employers, the companies met with over a dozen legislative offices as well as representatives from the Baker Administration. Together, we emphasized the value of strong clean energy and emission reduction policies for Massachusetts businesses and healthcare institutions.
Reducing greenhouse gas emissions curtails some of the most expensive healthcare challenges including asthma, emergency room visits, lost work days, and more. Studies show that clean energy can save about six cents per kWh in health care costs, plus an additional 22 to 28 cents per kWh in energy system savings — savings that Massachusetts healthcare institutions can then dedicate to patient care.
Massachusetts is a national leader on clean energy, but now is not the time for the state rest on its laurels. According to a recent study by the Northeast Clean Energy Council and Synapse Energy Economics, Inc., Massachusetts is behind on efforts to meet the legally-required emissions targets set by the GWSA. A number of proposed policies currently under consideration can help Massachusetts meet its goals and add to the growing number of clean tech jobs.
For one, increasing the Renewable Portfolio Standard is essential if the Commonwealth is to get back on track in its efforts to reduce greenhouse gas emissions. Key members of the Massachusetts businesses community has already indicated support for legislative proposals to achieve 50 percent renewable energy supply by 2030. A stronger standard would provide companies with policy certainty in achieving their own clean energy goals. In addition, lawmakers should update the GWSA to include interim targets for 2030 and 2040. While the current targets set for 2020 and 2050 are a positive step for climate action, interim targets would create a more predictable and stable business environment.
State lawmakers are also discussing efforts to modernize transportation and the state recently conducted listening sessions to hear from stakeholders about their vision for the future. Transportation is currently the largest source of greenhouse gas emissions in the state. Cleaning up the sector is necessary to comply with the GWSA and attract the growing number of companies interested in electric vehicles, better public transit, and better roads and bridges. We encourage lawmakers to develop incentives that support the transformation of the electric vehicle market, increase long-term investments in our public transit system, and support efforts to create a regional market-based approach to reduce transportation emissions.
From clean transportation to renewable energy, Massachusetts businesses and institutions are leading the way — showing that achieving the GWSA targets is not only possible, it is essential for a thriving economy. The Commonwealth should follow their lead and do its part to usher in a clean energy future.
Anne Kelly is Senior Director of Policy and the BICEP Network at Ceres, Bill Ravanesi is Senior Director Energy Program at Health Care Without Harm, and Elizabeth Henry is President of the Environmental League of Massachusetts.
