Brattle assists companies, organizations, and associations in navigating climate change policy developments, which have become a major focus of energy and environmental policy debates in the United States and internationally. The challenges of climate change and carbon planning pose unique opportunities for energy, manufacturing, transportation, and other industries. We help clients to analyze and execute response strategies during this era of significant regulatory uncertainty.
Our experts have backgrounds in climate change policy and planning from high-level government service, positions in premier research organizations, and extensive consulting experience. This expertise, in addition to our depth in energy resource planning, risk management, and finance and regulatory economics, places Brattle at the forefront of climate policy and strategy consulting.
For a major U.S. electric utility, Brattle provided assistance in developing a proposed policy structure to mitigate greenhouse gas emissions (CO2) that would be economically efficient, effective, and manageable for industries and the economy. The research evaluated the impacts on the electric industry, addressing overall, regional, and company-level effects of alternative policy approaches. It also addressed effects on consumers and other industries. On the basis of our work, the utility took a public position advocating a fee-based system rather than a cap-and-trade allowance system.
For the Union of Concerned Scientists, Brattle prepared a report assessing the economic impact of California’s climate legislation (AB32) on small businesses. The report used a statistical and case study approach to assess the impact of AB32-related energy cost increases on the costs of small businesses. The report concluded that for the large majority of small businesses in California, the direct impacts of AB32 would be quite small and easily passed on to customers through very small price increases.
For an investor-owned utility seeking regulatory approval for a generation expansion plan, Brattle examined the interrelationship between potential climate policy, the cost of natural gas, and the cost of generation technologies. We helped the client to incorporate these interacting factors into existing planning models.
For Alstom, a French engineering firm specializing in power and transport, Brattle prepared a report on EU climate and energy policies through 2030. The EU adopted legislation to provide public financial support of about 6 to 8 billion euros mainly for large-scale CCS demonstration projects.
For the Electric Power Research Institute (EPRI), Brattle developed multi-stage planning models to illustrate how the considerable uncertainty surrounding future prices for emission allowances (EAs) authorized under the Clean Air Act justifies delaying investment in irreversible control technologies, such as scrubbers or SCRs, until the present value cost of such investments is significantly below that projected from relying on EAs.
For a major California utility, we helped evaluate likely market design flaws of AB32’s cap and trade program.
We have advised government authorities on carbon pricing issues in Australia and Alberta.
Complex business and legal matters require intellectually honest and analytically rigorous solutions that are thoughtfully developed and clearly communicated. We apply economic and finance principles with uncompromising quality to achieve clarity in the face of complexity. Independent analysis, responsive execution, and compelling presentation. That’s Brattle. That’s the Power of Economics.