Engaging with regulators and policy makers

Within the framework of the energy policy triangle - sustainability, security and affordability – European Union environmental and energy policies continued to affect the markets in which ABB is operating.

In view of the challenges the European energy system faces as a whole, ABB argued for decisive and common political action such as a binding EU climate and energy strategy for 2030 in order to improve investment predictability. Considering ABB's technology portfolio, the policy areas of priority interest included smart transmission and distribution infrastructure, clean transport, energy efficient industrial processes and the ongoing reform of renewable energy support schemes. We maintained a dialogue with EU institutions aimed at working toward political and regulatory conditions which enable the uptake of clean and efficient technologies and encourage further research and development.

ABB is providing active policy input through European business associations, such as the European Association of the Electricity Transmission and Distribution Equipment and Services Industry (T&D Europe), the European Engineering Industries Association (Orgalime), the European Round Table of Industrialists (ERT), the European Wind Energy Association (EWEA), Friends of the Supergrid (FoSG), as well as a number of their national member organizations in countries like Finland, Germany, Italy and Sweden.

In a charged congressional environment in the United States, there has been difficulty gaining consensus in the sustainable policy arena. In the absence of Congressional action, regulatory activity has been the norm. Issues related to climate change, power plant emissions, energy efficiency and most other sustainable areas were addressed through the regulatory or Executive Order process in 2013. Within this environment, ABB has concentrated our efforts, in concert with our major trade associations (e.g. National Electrical Manufacturers Association and others) to help regulators and policy makers recognize the benefits of energy efficiency technologies which serve both environmental/sustainability interests as well as the capital cost interests of our utility and industrial customers.

In 2013, ABB actively participated in a series of policy forums to discuss technology and service opportunities that lead to improved power quality and reliability. These education forums, accompanied by targeted white papers, have served to present ABB as a credible and responsible technology source to the stakeholders in Washington DC. ABB's active involvement in these policy arenas has also contributed to our continuing success in attracting federal research and development funding.

In Washington, ABB has expanded into our third year of a branding and communications program which has continued to highlight smart grid and energy efficiency, and added emphasis on data centers. At the end of 2013, we began focusing policy debate on response activities to potential physical and cyber disasters affecting the power grid and emphasized our Foreign Direct Investment activity and environmental credentials (Hunterville Cable Plant). We continue to provide layman's versions of our technology white papers to the Washington stakeholder community. Currently ABB in the US is establishing a briefing team to discuss the topic of security protection of the grid to the Departments of Energy and Homeland Security and to various congressional committees with jurisdiction over energy policy.

In China, ABB supported government activities in the areas of energy conservation and environmental protection in line with China’s 12th Five-Year Plan. ABB continued to contribute products with the latest technology, introducing our worldwide solutions and expertise in smart grids and energy efficiency solutions to government agencies and key stakeholders.

ABB also provided reports to government entities to support the improvement of soft power, sustainable development of urbanization, as well as international cooperation in industry technologies.