SIEMENS

What do you like about San Francisco?

Pelosi: I love the people and the open atmosphere. It’s a compact town in which walking is a viable alternative to driving a car. When it comes to environmental action, you will meet many interesting people who truly care about the issues and want to make changes.

It must be a lot easier to introduce new environmental protection policies in San Francisco than in other areas of the U.S.

Pelosi: It’s the other way around. It is more challenging to move forward in San Francisco, because we already have gone so far down the road. We recycle, we have implemented efficiency-enhancing equipment, and we have economic incentives in place. The quick wins and the big savings have already been made. The marginal utility of additional measures tends to decrease over time. But if you go to, let’s say, Oklahoma, large gains are still to be made, environmentally and economically.

You once worked in banking. Do you do cost-benefit calculations before you start green initiatives in San Francisco?

Pelosi: Before we adopt an initiative, we usually carry out a thorough analysis. For instance, we took a close look at our recycling policies some time ago and found that in order to make them sustainable, we would have to align them more closely to the dynamics of the market. Waste contains very valuable elements. For example, certain metals can be harvested, but their prices fluctuate wildly, creating a level of economic risk no private partner in a recycling regime would have accepted. Therefore, on a wholesale level we signed futures contracts securing stable prices for the metals in our waste. On that basis, we collaborate with private players who do the operational part.

How can technology help to limit environmental impact?

Pelosi: Technology is a tool. It should be designed in a way that effectively addresses the most relevant problems. When I think about water treatment and energy efficiency, Siemens’ portfolio comes to mind. Many of these technologies open the door to decentralization. The smart grid, which Siemens is promoting, is going in that direction. With its help, we are able to diversify power sources and enable communities to develop their own unique solutions to local challenges. This could make it possible for the city to close coal burning power plants in the future. In the past two years, we have been able to close two such facilities, in Bay View and Potrero Hill.

Per person and per year, the amount of CO₂ emitted by the residents of San Francisco is half as much as the average for the entire U.S. – a great success, but still twice as much as in Copenhagen…

Pelosi: This difference can be reduced over time, in that we make use of new technologies that lower energy consumption. We can learn a lot about this process from the successful examples that we are seeing in Europe, particularly with respect to improving energy efficiency.

In what ways will San Francisco change by 2050?

Pelosi: Let’s hope it won’t be under water! Due to climate change, if we don’t cut CO₂ emissions drastically, parts of the city quite possibly could be under water. We will divert most of our waste from landfills to recycling; most buildings will be LEED-certified, which means they will meet very high standards for environmentally sustainable construction. These buildings will also be more agreeable places to work, because they will have more natural light and ventilation. The city will maintain its commitment to parks and greenery. You will see windmills in town, you will see tidal and wave energy plants. You will see electric cars and improved local transportation and more photovoltaic systems. I would love to live in San Francisco in 2050 - as long as it isn’t under water.