Any climate and energy bill that comes out of the U.S. Senate must provide much greater assistance for domestic clean energy manufacturers and support the research, development, and deployment of low-carbon industrial technologies, according to a letter by a group 10 Democratic U.S. Senators led by Ohio Senator Sherrod Brown. (Click here to download the letter as a PDF)

The letter was addressed to U.S. Senators John Kerry (D-MA), Lindsey Graham (R-SC), and Joe Lieberman (I-CT), who are crafting a Senate climate and energy bill that is expected to be released April 26th.

The letter represents a clear recognition by this group of influential Senators that a low carbon price simply will not be enough to build competitive domestic clean energy industries, particularly as other nations are investing aggressively to gain a competitive advantage in the industry. The Senators acknowledge the high stakes involved:

We know that other countries, in particular China, have already started to vie for leadership in the new clean energy economy. China has already become the world's leading manufacturer of wind turbines and solar panels. This is a contest that America cannot afford to lose.

To create a globally competitive clean energy manufacturing base the U.S. government must provide support, in the form of tax credits, greater technical assistance, and low-cost financing, to retool manufacturing facilities to produce clean energy, write the Senators.

Equally important is the recognition that "for American manufacturers to compete globally, they must develop and adopt more affordable and reliable clean energy technologies than those that exist today." Direct public investment in research, development, and deployment of clean technologies is therefore critical to building a globally competitive U.S. clean tech manufacturing base by improving manufacturing processes and reducing costs, according to the letter.

Efforts to support cutting-edge clean energy manufacturing in the U.S. are increasingly urgent as global competition in cleantech sectors intensifies. Recent research by the office of Senator Ron Wyden (D-OR) showed that in the last five years the U.S. trade deficit in renewable energy goods has ballooned by 1,400% to $5.7 billion.

Developing a globally competitive industry will also mean competing for clean tech export markets abroad. With the greatest share of future energy demand coming from developing nations unable to sustain large clean energy subsidies or impose high prices on carbon, America's clean energy competitiveness strategy must focus centrally on making clean energy cheaper, in unsubsidized terms, and a significant ramp-up in federal funding for clean energy innovation must be central to this strategy.

Breakthrough Institute has consistently argued for coupling major increases in energy R&D with clean technology manufacturing initiatives to accelerate the market introduction of new innovations. This was a major recommendation of our recent report, "Jumpstarting a Clean Energy Revolution with a National Institutes of Energy," which was co-authored with Third Way and released with Senator Sherrod Brown.

These 10 Senators have laid down an important marker in the contentious negotiations around climate and energy legislation, insisting that America should not trade its reliance on foreign oil for a reliance on foreign clean energy innovations. Carbon prices and new regulations are not enough. Investing in a new clean energy manufacturing industry and integrated R&D efforts are vital parts of a national strategy for clean energy competitiveness.

See Also:A Clean Energy Competitiveness Strategy for America

Jumpstarting a Clean Energy Revolution with a National Institutes of Energy

Wyden to Chu: Clean Tech Competitiveness is the Challenge of Our Time