Of plastic bottles, grassroots and reducing consumption

A word about plastics, the bete noire of the environmental movement, and a lesson in fuzzy math, environmental style.

Plastics, as we’ve been taught since the mid 1970s, are evil. Lucifer, sitting on his throne in hell, handed the formula directly to inventor Alexander Parkes in 1862, and life hasn’t been right since. Made from petroleum and breaking down into hazardous chemicals – when they break down at all – plastics are symbolic for everything that’s wrong with the world economy. There is no better example of plastic’s malignant effect than the spread of bottled water. Plastic water bottles increase petroleum use, clog landfills and foul the oceans, according to environmental groups. Every time I buy water in a plastic bottle, I feel like I’ve personally flown up to Prince William Sound and rolled a sea otter in Alaskan sweet crude. Plastic bottles have gotten such a bad rap lately that you might as well be carrying a mustard gas canister out of the MobileMart as 16 ounces of Poland Springs, in many environmentalists’ estimation. You can’t care about the environment and drink bottled water, goes the new orthodoxy.

So let’s stop buying water in plastic bottles! When demand slumps, the bottled water companies will have to use a more environmentally friendly material, like glass. Glass isn’t made from oil, it recycles easily and it doesn’t degrade in landfills. That’s all true, but glass breaks more easily than plastic. Breakage increases waste and spoilage. More waste means producing more to meet demands – which takes energy. Also, because it doesn’t degrade, glass permanently takes up landfill space. It’s heavier than plastic, so it requires more energy to ship.

Okay, so maybe glass isn’t the answer. How about boxes, like the kind kids drink juice from?  They’re light and durable. They’re also difficult to recycle unless the thin layers of plastic and metal insulation are stripped from the paper, according to the New York Times. Metal cans? Very recyclable, but it takes a ton of energy to produce and recycle metal – especially aluminum.

The point here isn’t to stick up for unfettered use of plastic bottles. The debate around plastic bottles and their potential replacements is symbolic of a larger issue – the complexity of “environmental math,” or trying to figure out when doing something with environmental motives has unintended consequences. The way our economy is geared right now, if we’re going to cut down on something like plastic bottles, we expect another disposable alternative. That’s the key word – disposable.

Anyone wise to environmental issues knew right away that the plastic bottle scenario above is a red herring. The best alternative to a disposable plastic water bottle isn’t making a disposable bottle out of another material; the best alternative is a reusable water bottle. It can be made of metal or plastic, as long as it isn’t thrown away. Because what we use is the smaller part of our environmental conundrum. Every product and commodity has an environmental price tag. The bigger problem is that we use too much of everything, and our appetite is growing. As far back as 1995, United Nations writer John Young reported in “Towards a New Culture of Consumption” that “materials use has grown far faster than population: in the US, total consumption of virgin raw materials was 17 times greater in 1989 than it was in 1900, compared with a threefold increase in population.” Metal, glass and plastic consumption is also increasing. Reducing use of one commodity usually means using more of another one, unless our disposable society changes. We have to stop making stuff to throw away.

The problem is that reducing consumption is the maiden aunt of the environmental movement. It bakes pies and babysits the kids so its sexier siblings – solar energy, wind power, biofuels and recycling – can go out on the town with media and investors. There is no industry backing conservation. In fact, considering that our economy is based on consumption, the business community is probably uneasy about the reduction message. Government, heavily influenced by industry, won’t push the reduction agenda. (If you have any doubts, consider what happened to the nutrition pyramid by the time the food industries weighed in.)

If this most important part of the oft-repeated “reduce, reuse, recycle” mantra is to catch on, then, it’s going to have to be a grassroots movement. Ten years ago, it would have been unrealistic to expect a national campaign of “turn it down, turn it off, don’t use it, don’t buy it” to take off on its own without some big patron saint at the national level. But we live in the viral marketing age fueled by the Internet. A growing crop of Web sites like carbonfootprint.com and the World Wildlife Fund site advise consumers on simple measures that make a big difference. A small example: washing clothes in cold instead of warm water – which is reducing electrical usage – saves the average consumer $167 per year, according to the blog Saving Electricity. The Rocky Mountain Institute estimates a lower dollar savings – $61 – but a higher percentage – 85 – and 1,281 fewer pounds of CO2 released into the environment.

Since you’re reading an environmental blog, chances are you knew that already. So here’s an extra credit assignment: find a good energy or material conservation tip on a Web site that you like, and e-mail it to people you know who are least likely to be environmentally aware. Tell them how much they can save washing clothes in cold water, or turning the air conditioner down two degrees. You could be planting the seed of a reduction revolution. And what the heck, put a reusable water bottle in their Christmas stocking. It just might catch on.

Social cause & sustainability lessons from Stonyfield Farms’ Hirshberg

Affable and inspiring Gary Hirshberg, chairman, president and CE-Yo of Stonyfield Farms was the featured speaker at Saturday’s University of New Hampshire graduation. The company makes the number-one selling brand of organic yogurt and is the number-three overall yogurt brand in the US according to Fortune magazine. Through its Profits for the Planet program, Stonyfield gives 10% of profits to environmental causes.

Here are memorable takeaways from his talk:

  • “We allowed ourselves to believe in a sort of modern day mythology about the infinite resilience of our finance system, and to allow greedy, short-term thinking to get the upper hand. In a nutshell, we borrowed money we didn’t have, to buy stuff we didn’t need.”
  • “We are seeing signs of failure in every single aspect of our relationship to the planet … if we stopped all fossil fuel burning this afternoon, the Earth’s fever would continue to mount for 40 more years before it began to break.”
  • “How far an item travels, is actually a very minute percentage of the footprint of an apple, yogurt or bottle of beer. The far larger footprint is in how the product is grown, that is the type of agriculture accounts for more like 50-60% of the carbon footprint. In other words, buying organic from a long distance may be far more carbon-friendly than buying non-organic locally. The point is, we need to be sure our brains are as engaged as our hearts when making big decisions.”
  • “I have learned that, whatever you choose to do, there is no point in producing the same quality as anyone else. In fact, that is likely a strategy for failure, for you are almost certain to be out-competed by someone who is better capitalized.”
  • “At a societal scale, those of you who question conventional thinking will be in the best positions to seize the next wave of jobs and economic opportunities. Consider for instance, that with the amount of sunlight that strikes the US each day, we would need only 10 million acres of land – or only 0.4% of the area of the United States – to supply all of our nation’s electricity using solar photovoltaics.
  • “When you consider that the US Government pays to idle approximately 30 million acres of farmland per year, you can see how confused our priorities have become.”
  • “Success will be when you finish eating the yogurt, you will eat the cup.”
  • “Solar isn’t just for Arizona anymore, either; right now in New Hampshire there are homes powered completely off the grid – built at competitive costs. For less than half the normal garage roof space, you can power your house with no fuel, no pollution, and no ice storm outages. Soon it’ll be down to one-quarter of that garage roof. And we haven’t even talked about solar hot water, which is even cheaper than solar cells, or wind power, which is cheaper too. Best yet, these power sources are built, installed, and maintained locally, right here in America, unlike the billion dollars per day we ‘export’ out-of-country for oil, for example.”
  • “Renewable technology isn’t just a energy issue, it’s a global competition. We don’t have a natural monopoly on sunlight or wind, and the Danes, Germans, and increasingly, the Chinese ‘get it.’ They aim to be the energy technology vendors to the world, and—having paid more attention to it than we have—they’re as good or better than we are.”
  • “Questioning conventional authority is a powerful way to succeed in business and in life. A couple of guys from UPS once asked ‘why not try to avoid left-hand turns,’ with their 95,000 big brown trucks.”
  • What we discovered from doing good is a new business formula that is now being mimicked by the largest companies on earth…. when you make a better, higher quality product, you leap all the way to loyalty without having to spend as much on advertising…. When you make it better, you get loyalty. And with loyalty comes the most powerful purchase incentive in commerce—word of mouth.”
  • “I can assure you that there will be more jobs in renewable energy, energy efficiency, preventative health care, organic/non-toxic agriculture, textiles and cleansers (I have yet to meet the consumer who prefers to eat the yogurt with more pesticides or synthetic hormones than in the traditional fields.).”
  • “The whole notion of service is very attractive to smart employers. From a practical perspective, those of you who volunteer and give your time and energy to work on positive change are exactly who we CEO’s want to hire.”
  • “Don’t forget that as consumers, we wield enormous power to choose the polluting, consumptive and failed ways of the past or the renewable and sustainable ways of the future too. When we purchase anything, we are voting for the kind of communities, society and planet we want. And I have learned that corporations spend billions of dollars to tally those votes.”
  • “We stand at the edge of the next wave, the sustainability revolution in which we use green chemistry which leaves behind no toxic residue, cradle to cradle technology which generates no waste, renewable energy with no carbon footprint, industrial ecology with waste from one process being the food for another, will be the norm.
  • “Personally, I feel there is no greater societal priority than to embrace the conversion to renewable energy and organic food production with all of the climate, ecological and health benefits. When people tell me that organics is not proven, I respond that it is the chemicals that are not proven, but the early results are poor as we face an epidemic of cancers and preventable disease. The same is true of our energy policy, which has been driven by generations who have grown up in the oil and coal business and believe that mining the earth’s crust is the only way to fuel our needs.”

 

Idea for solving an eco-calamity: garbage in, electricity out

The word’s largest garbage dump is the Great Pacific Garbage Patch, a toxic swarm of plastic trash twice the size of Texas that’s wreaking havoc on sea birds and marine life. It’s an obscene environmental problem for which we’re all responsible, but no one has a solution nor wants to deal with it. So yesterday, a group of scientists and conservationists set out to map the calamity and try to figure out a plan.

The US has nearly 90 waste-to-energy plants that turn garbage into electricity and hot water. They burn nearly as clean as natural gas plants, displace 7.8 million tons of coal-produced energy, and every ton of garbage consumed by the plants eliminates one ton LESS of CO2 emissions due to landfills and fossil fuel generation.

I’m just saying….

Green business may need a little white-collar entrepreneurship

Do you ever have a flash of inspiration, then shrug it off thinking it probably couldn’t pan out?

Shai Agassi never does. His back-of-the-napkin conversation with an engineer has quickly become perhaps the most viable plan for making all-electric cars feasible (hybrids still depend on fossil fuel). Agassi has a clever solution to “range anxiety,” the pervasive consumer worry that electric cars are prone to stranding their owners on deserted roads. His solution? If you run low on juice, don’t plug in for half a day; just switch the battery out. In the time it takes to pump a tank of gas, a robot would whiz out to your car, reach underneath, pluck out the battery and pop in a new one. If anyone can make that fanciful notion real, suggests the New York Times Magazine, it’s Agassi.

The 41-year-old Israeli-American has already created a software company, sold it for $400 million, started a SAP division that went from zero to $2 billion annually, and turned down the SAP CEO job. He has Israeli President Shimon Peres and Renault-Nissan behind his new venture, Better Place, and $400 million in investor backing. He is described as fearless, brilliant and charismatic, and a rhetorical steamroller in the face of objections.

Agassi is an exemplar of innovation (versus mere inspiration), a distinction about which we blogged a few weeks ago. He demonstrates the underappreciated need for clean, green and sustainable businesses to be as fiercely entrepreneurial as any other.

Unfortunately, the world often sees green concerns as starkly at odds with those of business, and every SUV or Superfund site in America reinforces the canard. Agassi, however, makes an eloquent case that classic entrepreneurship will be essential to green business success. He also trusts in the free market to drive demand for electric cars. In fact, he says, cheap electricity will subsidize those cars the same way that cheap minutes let carriers subsidize wireless handsets. (Agassi is, however, counting on government subsidies – to automakers, consumers and infrastructure builders – to kick start the market.)

Keep your eye on Better Place. This one promises to be a wild ride. If Agassi has his way, it won’t burn a drop of petroleum.

How Marc Gunther found a sustainable voice

Marc Gunther is one of the most respected thinkers, writers and speakers on business, the environment and corporate social responsibility.

Last year, Ethisphere ranked him # 39 out of 100 “influentials” in business ethics, ahead of Jim Koch, T. Boone Pickens, James Goodnight and Paul Newman. It’s a well-earned reputation.

In a wide-brush conversation, I asked him about his early influences, career highlights and how he became enamored with business ethics and sustainability.

Gunther grew up in Croton-on-Hudson, New York. “I was a child of the Sixties. My parents weren’t that politically involved, but our Rabbi was part of the civil rights movement; he had marched with Martin Luther King. That inspired me.

“I was an idealist, growing up during one of the most interesting times in history with JFK, Martin Luther King, RFK. Incredible social progress was being made, from the civil rights movement to the women’s movement. Vietnam and Watergate were happening. This had a big impact on me.”

Gunther graduated from Yale in 1973 with an English degree, but couldn’t find a job in journalism. His first gig was with a clean air activist group funded by Ralph Nader. “I inspected boilers in New York City, making sure pollution controls were being met, working with City enforcement groups. It was literally a dirty job.”

Then he cracked journalism.

Over the next two decades, he climbed the newspaper ladder, starting with the Paterson (N.J.) News, then The Hartford Courant, The Detroit News, Detroit Free Press and Washington Bureau of Knight Ridder. He covered many topics, but wrote most often about TV, media, politics and business. Gunther also interpreted the Internet in the nineties, writing stories like “What is cyberspace?” and “What is e-mail?”

When Fortune magazine hired him in 1996, he wrote even more about business. “I was beginning to wonder what had happened to my idealistic values. I had gotten off track.”

Around the time Gunther turned 50, he wrote a cover story for Fortune called “God and Business.”

“I interviewed people at the intersection of religion and corporate America. People like Jim Collins of “Built to Last” talked about business and values. I spoke with a Notre Dame priest who also taught MBAs. These people got me thinking about business in a fresh way. They were treating people well and believed business can – and should be – a force for good, for positive social change.”

The story became a turning point for him professionally and personally.

“Until then, I had a cliché view of business. The tension that existed between business and values got me thinking in a fresh way. Suddenly, I was no longer interested in writing about media companies, the entertainment industry, American Idol.”

Gunther began writing with “a sense of purpose.”

He wrote a cover story about the greening of Walmart and one about Jeff Immelt’s efforts to reshape the values of General Electric. “Those were two very interesting reputational turnarounds.”

He wrote a cover piece about Hank Paulson, as well as spirituality in the workplace. He authored stories about the business of carbon finance, the rise of corporate social responsibility, the zero-waste movement, genetically-modified rice, environmental activism, corporate governance, AIDS and gay rights in corporate America.

Last December, Gunther (and about 100 others) was let go by Fortune. He calls this experience “a hugely valuable event,” because it connected him with even greater numbers of interesting people and opportunities. Gunther likens it to an economic model called creative disruption “where things are destroyed and then new things spring up.”

The social media revolution is serving him well. His popular blog is proliferating. Gunther is on Facebook, YouTube and he’s started Tweeting (@MarcGunther).

His blog is being syndicated by two of the most influential online environmental voices, GreenBiz.com and The Energy Collective.

Proving “creative disruption” brings good karma to good people, Gunther not only still writes for Fortune, he authored the current cover story “Warren Buffett takes charge” about the Chinese company BYD.

Gunther smiles and in his self-effacing style says, “This could be a first – a laid off reporter writing a cover story for the publication that let him go, four months after it happened.”

A plug for plugging in

About eight years ago, one of my best friends scoffed at my newly purchased electric lawnmower and even louder at the reason I bought it. I had decided against a new gas-powered mower because I had read how much junk their two-stroke engines release into the atmosphere. My friend said that my electric lawnmower was no more environmentally friendly than his two-stroke mower because they both burned fuel, just in different places. His lawnmower did it in his own yard, while mine did it at coal-fired power plants here on the New Hampshire Seacoast, the source of my mower’s electricity.

Full disclosure: My buddy is not exactly objective when it comes to green issues. He’s about as environmental as a barrel of dioxin. He sells building materials and one of his favorite jokes is “I love spotted owls. They’re all we ate on the baby seal hunt.” You get the idea. So maybe he was dissing my lawnmower to get even with me for the year I gave his daughter a copy of “The Lorax” for Christmas, but he had a point. It’s a point society has to address as products like plug-in hybrid cars hit the market making claims at green cred. For example, General Motors is staking a lot on its soon-to-be released Chevrolet Volt plug-in hybrid. If, however, buyers don’t see economic and environmental upside in the Volt and its ilk, these products are going nowhere. It’s a given that plug-in hybrids burn less gasoline than their internal combustion-only cousins, but they don’t necessarily consume less energy.So they can’t be much better for the environment, right?

There is an answer to that knock against plug-ins, but government has to supply a critical missing piece before the answer stands up to scrutiny. The answer is based on the difference between point and non-point sources of pollutants. Power plants are “point” sources of air pollutants. Cars, lawnmowers etc. are “non-point” sources. It’s a distinction lost on most people, including my owl-munching friend. (I’m pretty sure he was just kidding about the owls, but I couldn’t swear to it.) This distinction gives plug-in hybrids the potential to change our transportation energy consumption habits for the better.

Point-source pollution is easier to manage than non-point source pollution because it’s easier to equip one power plant with effective pollution control technology than to equip 100,000 cars. Today’s emission control technology can remove up to 80 percent of the toxins, greenhouse gases and particles from smokestack exhaust. That could make plug-in hybrids an environmental improvement over conventional cars and their tailpipe emissions. “Could” is the key word, however. Most American power plants aren’t equipped with advanced environmental controls, especially carbon dioxide capture technology. Coal-fired power plant owners have consistently resisted retrofitting their plants with the highest levels of pollution control technology because they say it would drive up the cost of power. In some cases, the government has backed them up. The Department of Energy reported in 2008 that existing carbon dioxide capture technology isn’t cost effective on large power plants. Not surprisingly, there have been no government mandates for cleaner coal-fired power.

Can plug-in hybrids or my electric lawnmower make sense while coal generates 49 percent of America’s electricity? Yes, there are two reasons why plug-in hybrids are still a good idea. The first is that emissions control technology will get cheaper and more efficient if the federal government mandates it, which is the only way to create a market for it. The second is that plug-ins change how we think about our cars, and for the better. With wind, solar and biomass power gaining momentum, the grid will get greener. As it does, plugging in will make more and more sense than filling up. It will probably take a long time before conservation and renewable energy take a significant bite out of coal’s generating capacity, but it’s going to happen.

In the meantime, I think I’ll just let my grass grow longer and avoid the mower question altogether.

If you’re green, prove it

Green is wonderful, especially if you’re savoring it in the forest on a pillow of sun-drenched moss.

As a marketing term, though, green is getting old. Overuse and spin have dulled the verdant halo. Increasingly “green” label may be warning wary consumers they might be getting jerked around. Same with sustainable, fresh, local, organic, natural, recyclable and energy-efficient.

Consumers do want to buy green, and despite the recession, four out of five consumers claim they do (survey results). Unfortunately, one in three doesn’t know how to verify green claims. Translation: when consumers buy green, often they don’t really know what they’re buying.

Since buyers need information and sellers need credibility, the next wave of green marketing will rely heavily on proof – documentation and certification – just as cars rely on JD Power, and as buildings rely on LEED certification.

Says the Federal Trade Commission: “Claims that a product or service is ‘environmentally friendly,’ ‘environmentally safe,’ ‘environmentally preferable,’ or ‘eco-safe’ or labels that contain environmental seals – say, a picture of the globe with the words ‘Earth Smart’ around it – are unhelpful for two reasons: First, all products, packaging and services have some environmental impact, although some may have less than others. Second, these phrases alone do not provide the specific information you need to compare products, packaging, or services on their environmental merits. Look for claims that give some substance to the claim – the additional information that explains why the product is environmentally friendly or has earned a special seal.”

So what’s the seal of approval for green claims? There are options for niche segments of the industry, but no universal seal.

A hundred years after introducing its venerable seal of approval, Good Housekeeping wants a similar role in green affairs, at least when it comes to consumer goods for the household, like appliances, toys, cosmetics, food, beverages. The magazine is launching a green seal in the April issue.

The nonprofit Green Seal,  unrelated to Good Housekeeping, also covers consumer goods, but skews toward the institutional and B2B market with categories in construction, food service, office products, transportation and utilities. It has been certifying products since 1992. Green Seal’s bona fides are here Certified Green Seal products and services are here.

The Federal Trade Commission doesn’t have a seal, but offers guidelines for avoiding false or misleading green claims, over which it has some enforcement power. Here are its suggestions for businesses trying to comply with its “Green Guides” against deceptive green marketing. It defines terms like biodegradable, compostable, recyclable, recycled content and ozone- friendly.

The data center community is pushing for special LEED standards specifically for power-hungry facilities packed with servers. The criteria would be entirely different from green homes or office buildings.   GreenerChoices.org, launched by the nonprofit publisher of Consumer Reports in 2005, provides information on appliances, cars, electronics, food and home/garden products. It gives ratings and provides calculators.

Two generally respected labels are USDA Organic for food and ENERGY STAR  from the U.S. Environmental Protection Agency and the U.S. Department of Energy. The Today Show suggests greenercars.org, responsiblepurchasing.org and www.cosmeticsdatabase.com.

The Boston Globe recently explored this miasma of green confusion around the carbon footprint issue. The article surprisingly revealed that microwaving food (they don’t call it nuking for nothing) is greener than baking it and that bottled water from Fiji or France is probably greener (again, from a carbon standpoint) than Poland Springs. The reason? Bottling plants in France typically use nuclear power-generated electricity, and Pacific Islands plants typically use geothermal-powered electricity. It’s fossil fuels in the United States. Bottom line: tap water is your best bet.

Dassault Systèmes SolidWorks Corp. of Concord, Mass., (disclosure: a client), is developing software that fosters intelligent green decisions long before products hit the market – in the design phase. DS SolidWorks makes widely used 3D computer-aided design software, and the new product, code-named “Sage,” will detail in real time the environmental impact of parts, assemblies and design decisions that go into new products.

The software will feature a dashboard that not only provides information on carbon footprint but also on air impact, water impact and energy consumed in manufacturing. The high-end version will roll up the impact of a product across its environmental life cycle and also include information on energy consumption throughout a product’s usage phase.

So those are all the yardsticks. Are you unconfused yet?

Even if we could objectively measure, certify and label products from a perfect set of all-encompassing green standards, we’d still have problems like this: Which is better, buying a new eco friendly hybrid or driving your oil-burning microbus into the ground?

In the meantime, if you’re marketing a green product that’s really green, go to one of the authorities, document your environmental impact, and get certified.

Biofuel needs a new message

Biofuel startups have a messaging problem. Everyone from scientists and environmentalists to economists and ethicists are hammering the industry in a near-daily barrage of bad press and damning research studies.

I won’t spill the entire rap sheet against biofuels – you can read about them here or here for starters – but to summarize the key points affecting public perception:

  • “sustainable biofuel” is an oxymoron: it takes far more fuel and energy to produce than it delivers
  •  production actually causes more greenhouse gas emissions than it eliminates
  •  it takes farmland away from food crops, increasing prices and world hunger, and
  •  it contributes to rainforest deforestation, to name just a few offenses.

These problems are primarily the domain of first-generation biofuels produced from food stock like corn, soybeans or palm oil. Whether its indictments are fair or not, the perception taints the entire industry, including more promising second-generation alternatives such as cellulosic ethanol (which relies on non-food biomass like agricultural waste products and wood chips) and algae-based biofuels.

Yet the industry’s only response is the same old message it’s been touting since day one: Biofuel helps reduce our dependence on foreign oil.

Important as energy independence may be, the message is ineffective. It’s a macroeconomic abstraction at a time when people are struggling with tougher problems closer to home… like having a job, healthcare and a place to live. It doesn’t give me a good reason to care. Besides, don’t solar, wind and other more clean energy industries have a more attractive hold on that same message? And for transportation fuels, electric and hybrid plug-in vehicles rule the day.

Weak messaging combined with the steady drumbeat of detractors has caused the biofuel industry to lose control of the debate…at their own peril. I don’t have the answer to biofuel’s messaging problem. But if asked, I’d steer the discussion this way:

Doing nothing is not an option – First, re-assert biofuel’s essential role in renewable energy diversity. The messaging needs to convey that while it may not be a perfect fuel; it’s certainly a better fuel. Detractors may fling their arrows, but what’s the alternative? Our oil addition may ebb as new green technologies catch hold, but it won’t go away in our generation. Do we just keep pumping and mainlining dirtier fossil fuels into our cars, homes and industries indefinitely? The messaging needs to communicate that doing nothing is not an option. No single renewable energy option can solve all our problems. Biofuel is a necessary part of our clean energy stew.

Make it personal, keep it local – The biofuel industry needs to get beyond its national energy independence message and explain how a well structured biofuel ecosystem can benefit local economies and, ultimately, people’s lives by:

  • creating jobs in feed stock, production and distribution, and
  • reducing the negative impact on local environments.

In our state of New Hampshire, for instance, the North Country’s economy is reeling from the collapse of the pulp and paper industry. Biomass production from waste wood would not only bring jobs and spur new ancillary businesses, it would lead to better forest management, which boosts tourism. Companies like Pacific Biodiesel and organizations like the Sustainable Biodiesel Alliance promote small scale, community-based biofuel production based on local feedstocks, local production and local distribution of sustainable fuel. In other words, “grow it here, produce it here, use it here.” The messaging needs to communicate how biofuel can positively impact me and everyone else at a personal level.

Rebrand – Lastly, biofuel startups need to directly address the early missteps and knocks against the industry openly and honestly. Acknowledge the problems and show what you’re doing to fix them. Continued support for current first-generation corn-based ethanol production is a non-starter. It’s an unsustainable industry propped up by bad public policy and pols beholding to the agri-biz lobby and Iowa caucus goers. It’s a battle that can’t be won in the long term.

This requires re-branding. Second-generation biofuel companies need to set themselves apart from their first-generation legacy with branding that communicates how they are different…how they are better. The branding should communicate the industry’s future vision. Today, biofuel startups attempt to differentiate based on their intellectual property and production methods. But who really cares which bacteria or enzymes are best for digesting cellulosic biomass, or which algae strains yield the most oil? Most of us don’t. We have faith you’ll figure out the science. Just show us the way forward.

The growing attacks on biofuel could have the negative effect of stymieing national and global biofuel policies at a time when breakthroughs in sustainable biofuel production are nearing commercial reality. The biofuel industry needs to reclaim the megaphone and deliver a clear, crisp message that communicates its benefits in a personal way.

eBay might be kinda sorta green

eBay is going public about going green (surprise), announcing a Green Team “committed to doing even more to help the world buy, sell and think green every day.” But will the green tint stick?

Well, they’ve got a huge solar power installation. Their business happens to promote reuse, which is better than recycling. They pay for cradle-to-cradle packaging and carbon credits. And who’s to say their heart isn’t in the right place? But beyond that…?

Well, there are plenty of newly manufactured consumer items for sale on their site. A lot of small parcels zooming all around the world 24 x 7 (some $2,000 in goods per second, in fact) doesn’t do much in the way of reducing fossil fuel consumption. And, as the New York Times points out, the ad campaign will be on virgin paper. Ouch! The article proves yet again that even modest pretensions to green goodness are subject to scrutiny.

Credit eBay for doing some good work. But from a marketing perspective, it’s hard to own the green leadership mantle when, by all appearances, your carbon footprint is about the same as everyone else’s.

An unlikely love story: Alaska and renewable energy

Agree with it or not, Sarah Palin’s hymn to the oil industry, “drill baby drill” was one of the 2009 election’s catchiest mantras. Surprising to find, then, that Palin is a fan of renewable energy, according to a recent New York Times report. Furthermore, Alaska, the second-largest oil producing state after Texas, is fertile ground for renewable energy. Fuel prices there are high. Strong winds support a growing wind power industry. Palin wants 50 percent of the state’s electricity to come from hydro power by 2025.

This doesn’t actually jibe with Alaska’s image as the oil and gas industry’s treasured love child, but there’s more to this story than irony. It speaks to why renewable energy’s time might actually have arrived. For real, this time, and not like the giant renewable energy head fake of the 1970s.

That was the era when the Gulf oil states started flicking the spigot on and off according to how many tricked out 747s the Saudi royal family needed, or how mad they were at Washington over U.S. Middle East policy. Gas efficient cars went mainstream. The first roof-mounted solar arrays appeared. Utilities invested in fuel cell development. Jimmy Carter put solar panels on the White House roof. Schools and other public buildings were designed using passive solar heating and cooling techniques. Then the price of sweet crude dropped into the cellar, Ronald Reagan ripped out the White House solar panels, and the renewable energy industry turned back into a hippie pipe dream.

So renewable energy is hot again, but why won’t it suffer the same fate it did when bell bottoms were in style? After all, we live in a market economy. No matter how good an idea renewable energy is, the market still favors fossil fuels. When the price of oil falls, the power that renewable energy sources produce is too expensive to compete.

The difference between now and the ‘70s is that the oil’s cost dynamics are changing permanently. China, India, and a host of developing economies are competing with the U.S. in international oil markets. Barring a complete collapse of those countries’ industrialization programs, that competition will keep oil prices at steadily higher levels. Also, the era of cheaply extracted oil is waning. An increasingly large percentage of oil reserves are hard to get out of the ground, and the prices will reflect the greater effort and new technology to bring it to market.

Rural Alaska is a laboratory for this dynamic. Market forces, acting through the price of shipping and the per-gallon price of the fuel, conspire to make fuel-generated electricity outrageously expensive in rural Alaska – five to ten times higher than in the lower 48. If the price of oil were lower, the market might be able to absorb the high delivery costs. But the price isn’t low enough, and here’s betting that it never will be. That means the local market conditions in rural Alaska will permanently favor renewables. “Despite high installation costs and the need for cold-weather engineering,” the Times reported, “wind turbines can often produce power at a lower cost than diesel generators by eliminating the need for fuel.”

How long before the base price of oil rises enough to make wind and solar the economic choice in rural Wyoming, the Dakotas, Texas, California, etc.? A long time off, maybe. But the fact that it is already happening in Alaska is not an isolated fluke. It’s the first sign that the economic case for renewable energy is growing strong enough to endure the next temporary decline in oil prices.