FORESEEING A NEW ENERGY FUTURE

Clean energy innovation: An investment in the future
Peter Rothstein, March 7, 2011 (The Hill)

"…Innovation is the engine of our economy…[from] research and new inventions…to commercialization and the creation of new markets, innovation drives economic growth and creates jobs…With almost eight million jobs lost in this past recession, investment in innovation is more necessary than ever…[so] Congress…should prioritize investment in one emerging innovation sector of particular economic and strategic importance: Clean energy.

"With demand for energy projected to skyrocket this century, the U.S. is positioned to create new companies…researching, developing and manufacturing new energy technologies as well as companies building renewable energy generation projects, implementing energy efficiency programs, delivering energy management services and financing new projects. Hundreds of millions of jobs will be created globally in this sector over the next decade."

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"The next generation of clean-tech companies can be started and grown here, but only if the federal government and private sector both invest…The starting blocks for innovation industries is research, and the federal government plays a crucial role, representing the bulk of clean energy basic research, and major portion of applied research…At about $5 billion for federal basic and applied research, our total level of investment is inadequate.

"U.S. investment in clean energy has lagged for decades, and many countries and regions (including China) now out-invest us in in this area…Increasing federal investments in basic and applied research, and market development are critical to bringing private capital to invest…Unfortunately, even today’s modest level of federal energy research investment is at risk. The House has proposed to cut the Department of Energy basic and applied science budgets…[including] ARPA-E, a highly promising new program…[I]n less than two years its investments in potentially groundbreaking energy technologies have already leveraged more than $100 million in private capital."

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"These proposed federal research cuts equate to a disinvestment in economic growth and in our ability to be a leader in next generation clean energy technologies and markets…[and ceding] clean energy leadership and future jobs to China, India and Europe…Program by program considerations and justifications are overdue. But across the board disinvestments in energy research will doom one of our most promising emerging industries…

"…As we look at the potential for millions of jobs and trillions in new wealth in the emerging clean energy industry, we need to realize that clean energy innovation is not about government programs versus private sector investments. It requires an “all of the above” strategy that includes both federal R&D support along with private industry investments, and public-private partnerships to enable new markets…Clean energy is on the verge of becoming the first industry where the U.S. ceded the global competition from the outset, at the R&D stage. This is a deeply worrying trend…Other countries will be the winners…"