Earlier this month, China surpassed Japan as the world's second largest economy and since, has snared a flurry of clean tech headlines that collectively tell a very clear story: China is rapidly and effectively securing its position as a global clean technology leader as the U.S. watches in stagnated wonder.

Below we've aggregated some of the most important updates coming out of China over recent weeks as it surges to the front of the global clean technology sector:

Continue reading "Tracking a Rising Tiger: China" »

By Matthew Stepp, Breakthrough Fellow

A vigorous debate about whether the U.S. government should invest in and help manage clean energy industries to spur economic growth is unfolding among academics, policy makers and business leaders. Curiously, a handful of federal, state, and local government officials are forging ahead in spite of the national discussion and formulating targeted industrial policies to create vibrant clean energy innovation ecosystems that include manufacturing, material suppliers, customers, and R&D. Cases like Rioglass Solar, a Spanish glass manufacturer expanding operations in Arizona, as well as the considerable growth of the wind industry across the US show how the public and private sector can collaborate and, more importantly, how effective industrial policy can create well-paying, long-term jobs.

This past week Rioglass Solar, which provides curved glass sheets used in solar panels, decided to build a $50 million headquarters and a 130,000 square foot manufacturing plant in Surprise, Arizona. The project will create 100 new jobs at the headquarters alone and many more in the manufacturing plant - a welcome economic boost for the town.

The chief incentive for the American operations expansion? Local, state, and federal officials provided almost $12 million in tax credits and fee reductions to (successfully) lure Rioglass to the area.

Continue reading "Bucking the Debate: Clean Energy Industrial Policies At Work" »

A recent collection of nuclear news over at the Energy Collective suggests that Japan and South Korea are taking major steps to sign lucrative nuclear deals - with relatively little competition from Westinghouse or Areva. And China is planning to increase nuclear capacity nearly eight-fold by 2020 by building reactors locally using Westinghouse AP1000 technology.

Read the full synopsis here.

When will the U.S. get in the game?

Cross-posted from Roger Pielke Jr.'s Blog

It is old news for regular readers of this blog, but today's NYT has a thoughtful article on how China's emissions are surging and efforts to increase efficiency gains are foundering.

Here is an excerpt from the article:

Continue reading "China's Not-So-Spontaneous Decarbonization" »

China is planning to bring on two new reactors at the Ling Ao nuclear power plant complex, adding about 1.7 GW of average capacity (assuming a capacity factor of .87) at the complex. According to Bloomberg, China plans to bring the first new reactor online in October and the second in 2011 as part of its effort to replace some of its coal fired generation with nuclear energy.

Just to put the size of these reactors in perspective, (according to Breakthrough analysis) it would take nearly ten offshore wind farms the size of Cape Wind or about four solar PV projects the size of California's $3 billion Million Solar Roofs initiative to supply the amount of energy that these additional reactors will provide for China.

Cross-posted from Americans for Energy Leadership

China is building an ambitious "Solar Valley City" as a new national center for manufacturing, research and development, education, and tourism around solar energy technologies. as part of the Chinese government and industry's efforts to promote clean energy technology and grow the nation's global market share (see video below beginning at 10 seconds).

Solar Valley City is located in Dezhou, Shandong Province, where I visited last month as part of a delegation from Stanford University, and it is unlike any city you've seen before. The city houses over 100 solar enterprises including major firms like Himin Solar Energy Group Ltd, the world's largest manufacturing base of solar thermal products, and Ecco Solar Group. According to reports, around 800,000 people in Dezhou are employed in the solar industry, or one in three people of working age.

Continue reading "WATCH: China building ambitious "Solar Valley City" to advance solar industry" »

GE's Chinese research and development centers are getting the nod from GE leadership as they make the move from a supporting role to lead on research projects to develop cutting edge technologies - such as healthcare, and yes, clean energy technology - that are targeted to both the Chinese and global markets:

The increased competition for GE from local companies in China is due in part to a massive push by the Chinese government to promote clean energy and R&D. In recent years, it has rolled out a range of renewable energy targets and financial incentives, including significant tax breaks for companies that invest in research related to energy...

The GE research center has also been key for the development of wind-power technology, including power electronics hardware and software that allow wind turbines to keep operating after lightning strikes and other events cause sudden drops in voltage on the power grid. The center has now produced 20 patents in this general area, says Yunfeng Liu, the manager of GE's power conversion lab in Shanghai. Such technology can also make the grid more stable than it would be without the presence of wind turbines, by helping to maintain the necessary voltages and frequencies on transmission lines.

Further Reading:

"IBM's R&D Investment in China Debunks Claim that R&D Will Stay in U.S."

World Leader in Innovation: China?

Highlighting China's rapidly developing economy and even more rapidly developing energy sector, John Fleck at the Albuquerque Journal highlighted Senator Jeff Bingaman's (D-NM) reflections on the clean energy race after his recent trip to China:

But this is about more than just meeting China's internal needs, according to Sen. Jeff Bingaman, D-N.M. China sees green energy -- wind, solar and the like -- as the global growth industry of the 21st century. And it aims to dominate this new global market.

"The Chinese government has determined that this is an area of substantial opportunity for them," said Bingaman, chairman of the Senate Energy Committee, in an interview last week after returning from a week-long fact-finding trip to learn more about what the Chinese are up to.

If the United States does not respond, we risk losing out on a major global economic growth opportunity, Bingaman said.

Fleck expands on China's clean tech progress, citing our report, "Rising Tigers, Sleeping Giant" and quoting Breakthrough's Director of Climate and Energy Policy, Jesse Jenkins:

Some 200 green energy firms are now located [in Baoding, one Chinese clean energy cluster], according to Jesse Jenkins, an energy policy analyst at the Breakthrough Institute, a California think tank. Jenkins and his colleagues published a report last fall arguing that China and other Asian economic powers are "set to dominate the clean-energy race by out-investing the United States.

China recently installed its first offshore wind farm (102 MW) and reports suggest it plans to invest $100 billion in 30,000 more megawatts of offshore wind power by 2020.

"How much is China willing to invest, in terms of wind? The Beijing-based energy consultancy Azure International has predicted that the country is on track to install 514 megawatts of offshore wind over the next three to four years, a $100 billion investment in up 30,000 megawatts of wind power by 2020."

That amount of wind represents more than double China's current land-based wind capacity.

In stark contrast, America's nearly decade-old NIMBY-beleaguered Cape Wind project was dealt another setback last week when the Advisory Council on Historic Preservation (ACHP) recommended that Interior Secretary Ken Salazar not approve the project. Secretary Salazar is expected to make his final decision by the end of April.

With the U.S. looking to make good on long-promised high-speed rail, China is first in line to offer up its technology, engineering know-how, and finances. They're even willing to accommodate our "Buy American" fantasies, allowing "at least 80 percent of the components of any locomotives and system control gear to come from American suppliers, and labor-intensive final assembly would be done in the United States for the American market."

According to the New York Times:

The Chinese government has signed cooperation agreements with the State of California and General Electric to help build such lines. The agreements, both of which are preliminary, show China's desire to become a big exporter and licensor of bullet trains traveling 215 miles an hour, an environmentally friendly technology in which China has raced past the United States in the last few years.

"We are the most advanced in many fields, and we are willing to share with the United States," Zheng Jian, the chief planner and director of high-speed rail at China's railway ministry, said.

National Review headline from 1910: "US Not Automotive Leader Since Most People Still Using Horse and Buggy"

(ok, not really)

But despite hundreds of reports to the contrary, the National Review Online reports today that "China is not the leader in clean energy" (emphasis added)...because it is also still building a lot of coal plants?

Does this mean no country can lead in the production of electric vehicles because lots of people still drive regular old gas guzzlers?

Continue reading "If Not China, Then Who?" »

As we projected in "Rising Tigers, Sleeping Giant," the latest Pew report finds that China has a commanding lead over the rest of the G-20 in clean energy investment:

"Even in the midst of a global recession, the clean energy market has experienced impressive growth," said Phyllis Cuttino, who directs the Pew Environment Group's Global Warming Campaign. "Countries are jockeying for leadership. They know that investing in clean energy can renew manufacturing bases, and create export opportunities, jobs and businesses."

"The facts speak for themselves," said Bloomberg New Energy Finance Chief Executive Michael Liebreich. "2009 clean energy investment in China totaled $34.6 billion, while in the United States it totaled $18.6 billion. China is now clearly the world leader in attracting new capital and making new investments in this area."

Countries with strong nationwide policy frameworks, including renewable energy standards, carbon markets, priority loans for renewable energy projects and mandated clean energy targets, such as China, Brazil, Spain, United Kingdom and Germany, have the most robust clean energy sectors as a percentage of their economies. Countries without such policy frameworks including the United States, Japan, and Australia lag behind.

"The United States' competitive position is at risk in the emerging clean energy economy," said Cuttino. "Our nation has a critical choice to make: pass the federal policies necessary to position us as the world leader in the large and growing global clean energy market or continue to watch as China and other countries race ahead."

For those who need a reminder, those steps include:

1) Significantly increasing investment in clean energy innovation by making a sustained commitment to research, development, and demonstration (RD&D).

2) Spurring the adoption of innovative manufacturing processes and accelerating economies of scale in U.S. clean energy manufacturing.

3) The U.S. government actively supporting, through targeted public policy and investment, the acceleration of clean energy deployment and market creation in order to reduce the price of promising clean energy technologies and encourage their widespread adoption.

The Jews' exodus from Egypt isn't the only one garnering some attention this week. BusinessWeek reports that BP is going the way of other solar panel producers (Evergreen Solar announced its moving plans earlier last week) and packing up its domestic manufacturing and moving to China - where public investments in clean tech lead to cost reductions that have not been matched domestically despite stimulus dollars.

In Asia, "not only do you get cheaper labor but you also get major tax breaks just not happening here," Bencik said. "They're not getting the same incentives here in the states as elsewhere, and that's pushing these positions overseas."

Fortunately for the U.S., China is ready and willing to share as it speeds ahead in its development of domestic high-speed rail. Even though China still imports HSR technology to manufacture trains, it has developed its own model that it has yet to commercialize. And now, ABC reports that China is not only planning to build out 16,000 miles of high speed track by 2020, it is aiming to bid for a piece of the $8 billion U.S. HSR pie.

"China is willing to share its mature and advanced technology with other countries to promote development of the world's high-speed railways," Wang [Zhigou] said."

A recent announcement that IBM will invest $40 million in an"energy and utilities solutions lab" is further evidence that China's large-scale investments in clean tech are attracting private investment in R&D, not just manufacturing.

This latest news from IBM will be difficult for pundits like Thomas Friedman and Brad Plumer to ignore. Friedman and Plumer have argued that the U.S. will be able to maintain its competitive edge in innovation even as clean tech manufacturing relocates overseas.

IBM is not the first, nor is it likely to be the last to set-up a clean-tech R&D center in China. Dow Chemical opened one last June and a few months later Applied Materials follow suit, opening an advanced solar R&D center in Xi'an.

Continue reading "IBM's R&D Investment in China Debunks Claim that R&D Will Stay in U.S." »

The CBS Evening News has profiled the U.S. position in the global clean energy race for a segment called, "Where America Stands," and unsurprisingly, America stands behind China and other nations in developing and producing the technologies that will underpin the tremendous growth of the global clean energy sector over the coming decades.

CBS correspondent Celia Hatton reports, "China is the country cashing in on the green revolution." The video echoes the findings of a recent report on clean tech competitiveness by Breakthrough Institute and the Information Technology and Innovation Foundation, "Rising Tigers, Sleeping Giant," which notes that other countries have surpassed the United States in the production of virtually all clean energy technologies, from solar and wind, to nuclear and high-speed rail.

Hatton reports that China also dominates manufacturing in other "eco-products" like electric bikes, solar hot water heaters, and electric vehicles.

What should the United States do to stay in the game?

Some have argued that all the United States needs to do to stay competitive is to put a price on carbon, and wait for the market to do its magic. But CBS takes a closer look at what's needed to compete: "In the long-term, experts say U.S. government policies should build on America's strengths: technological innovation and highly efficient manufacturing to compete with China's unbeatable wages." Investing in clean technology research and development is particularly critical since other countries, including China, are moving quickly to close the innovation gap with the United States.

Without such investments, the new clean energy technologies may not just be manufactured in China, but invented there, too.

You can view the full video below:

Originally published at the Austin Statesman

Charlie Gay, Michael Shellenberger and Ted Nordhaus, Special Contributors

A race is on to lead in the burgeoning clean energy sector. While the United States might be behind for now, we are far from the finish line.

America once led the global solar business, but manufacturing scale is shifting to Asia. Strong, targeted government incentives supported markets for solar technology in Japan, a country almost completely dependent upon imported energy.

At the same time, public investment in research and innovation helped build the technical prowess needed to establish solid manufacturing capabilities. The Chinese government, along with numerous entrepreneurs, is developing manufacturing and technical capabilities for solar and other clean energy technologies that will combine economies of scale with a growing market, which many project could be the largest in the world in five years.

Asia's current momentum is not exclusive to solar power. A Breakthrough Institute report, "Rising Tigers, Sleeping Giant," found that America lags behind Asia's rising "clean tech tigers" -- China, South Korea and Japan -- in producing virtually all clean energy technologies, from wind to nuclear power, from high-speed rails to plug-in hybrid cars and the advanced batteries that power them.

The governments of these three nations are expected to invest more than $500 billion over the next five years to extend their lead in clean technology products and applications. That's enough to out-invest the U.S. by a 3-to-1 margin unless this country establishes a national clean energy competitiveness strategy. Devising a strategy and fulfilling the vision is feasible, and there is historical precedent to prove it.

When the U.S. faced global competitors willing to invest enormous sums to dominate defense and information technologies during the Cold War, the nation's response was bold and proactive.

Our government introduced procurement programs, policies and incentives that provided strong demand for emerging information technology, semiconductor and computing technologies, while U.S. investments in research and education provided the human capital needed to block the threat. These investments sparked the IT revolution and helped create economic clusters such as Silicon Valley that have given the U.S. an enduring competitive edge.

Today, government investment is determining the location of the new "Silicon Valleys" of clean technology -- in China. One Chinese city, Baoding, is home to more than 200 renewable energy companies. Dubbed "Electricity Valley," the city is a national clean energy hub, linking manufacturing to research institutions and public policy.

In contrast to the investments made by the U.S. government during the Cold War era, the U.S. response to today's clean energy race has not been mobilized, threatening the promise of a new wave of American prosperity fueled by emerging clean energy industries and jobs.

On Jan. 8, President Barack Obama announced $2.3 billion of funding from the economic stimulus for the "domestic manufacturing of advanced clean energy technologies," according to an administration official. While these steps toward a clean energy economy are potentially consequential, energy and climate legislation working its way through Congress is more focused on limiting pollution than continuing the investments needed to secure our nation's competitiveness.

We need an integrated strategy, combining the insights and vision of industry, government, academia, utilities and consumers. This approach will facilitate the investment climate required to ensure stability and long-term demand for renewable energy.

There's room for another "Silicon Valley" of clean technology outside of China. The U.S. can close the investment gap with Asia and provide direct support for its clean tech research and innovation, manufacturing capacity and domestic markets if we pursue a long-term national clean energy competitiveness strategy. Robust and targeted public investments such as the ones committed recently by Obama can pave the way to a new era of U.S. technology leadership and economic prosperity -- but only if we act now.

Gay is president of Applied Solar at Applied Materials. Shellenberger is president and Nordhaus is chairman of the Breakthrough Institute.

UPDATE 2/17/10

Over at Green Chip Stocks, clean tech market analyst Nick Hodges asks, "Who's Winning the Clean Tech Arms Race?" The answer shouldn't surprise you. Nick cites the deficiencies in U.S. clean energy policy in relative to China's policies as a major reason that "the global clean tech game will be dominated by Chinese players for the foreseeable future."

With Chinese manufacturers poised to dominate emerging clean tech markets, where are all those green jobs that the Democrats have promised? Many of them are going to China, writes SUNY history professor Judith Stein in a recent op-ed in the Philadelphia Inquirer. Stein writes that green job rhetoric won't create green jobs without a plan to invest in clean energy manufacturing here in the United States:

"Green jobs are surely needed. But green Democrats simply echo the Atari Democrats of the 1980s, who concluded that traditional manufacturing was disposable and high technology was the wave of the future. During this era, the young Barack Obama attempted - and failed - to find jobs for displaced steelworkers in Chicago."

Stein also writes that China's manufacturing prowess has implications for clean tech innovation as well, as I argue below: "Meanwhile, the Chinese government offers huge subsidies to encourage green-technology manufacturers in the United States to move their production to China. And when manufacturing leaves, research and development operations follow. That's how China attracted battery and fuel-cell research formerly conducted in America."

By Devon Swezey

In his State of the Union Speech, President Obama issued what is now a familiar refrain: "the nation that leads the clean energy economy will be the nation that leads the global economy." If there were still doubts about which nation has the edge they were put to rest days later by a bluntly titled front-page article in the New York Times, "China is Leading Global Race to Make Clean Energy."

Though the story is not new, the article is the latest indication of the alacrity with which China has emerged as a clean energy powerhouse in the span of just a few years. China now manufactures more solar cells than any nation in the world, and recently surpassed the United States as the largest market for wind turbines in 2009. According to "Rising Tigers, Sleeping Giant," a recent study by the Breakthrough Institute, China is also a world leader in advanced transportation technologies and batteries, is increasingly localizing the production of nuclear power plants, and has developed some of the world's most advanced CCS technology.

Despite the mounting evidence, many have dismissed the idea that the United States is competing in a "clean energy race" with China, or that it matters.

Some critics assert that characterizing the intense competition as a "race" obscures the climate benefits of greater clean energy deployment throughout the world and the "win-win" nature of a global clean energy economy. The New Republic's Brad Plumer embodies this "it's all good" line of reasoning, writing:

If China zooms ahead and figures out how to make really cheap wind turbines, that doesn't hurt anyone--it just makes the enormous task of cutting global carbon emissions that much easier.

Plumer's casual attitude towards the economic consequences of ceding clean tech manufacturing leadership to China is a slap in the face to U.S. Senators Sherrod Brown (D-OH) and Debbie Stabenow (D-MI). The pair has been working hard to secure the new clean energy manufacturing jobs that can help revitalize the industrial heartland.

At Yale e360, environmental journalist Christina Larson similarly suggests that the United States has little to lose if China dominates emerging clean tech industries:

The United States will still gain many new green-collar jobs in installation and maintenance, which can only be locally based, as well as sales teams, conference planners, and other positions already arising to support the growing green-tech field.

Forget about the export-oriented, high-value added, high-wage clean energy manufacturing jobs of the future that Democrats have promised will jumpstart the ailing American economy; the clean energy conference organizing industry is now open for business.

The New America Foundation's Reihan Salam mocks the idea of a "clean technology race," arguing erroneously that the barriers to entry in clean energy are low and that any established competitive advantage will be "ephemeral."

He compares China's clean tech policies to Japan's policies of the 1980s, as if the Japanese government did not succeed in supporting the development of what are still world leading high technology industries in automobiles, electronics, and high value steel manufacturing. While Japan was investing in high-tech industries the United States was simultaneously accelerating the financialization of its economy, creating trillions of dollars of paper wealth that has largely vanished over the last two years.

Indeed, Salam admits that federal investment in technology has spawned entire new industries like aerospace and electronics, but takes pains to paint similar investments that can catalyze the development of new clean technologies as "disastrous."

Apparently our surging clean tech competitors in Asia and the EU didn't get the message.

Continue reading "It's Not All Good: Why You Should Worry About the Clean Energy Race" »

U.S. clean tech manufacturers are losing global market share to their international competitors. What is the federal government going to do about it?

That was the question posed last week to Energy Secretary Steven Chu as he testified before the Senate Energy and Natural Resources Committee. Chu was speaking on the central role that energy research and development holds in any successful effort to mitigate climate change.

During questioning, Senator Ron Wyden (D-OR) quotes an earlier statement by Secretary Chu, calling it "the challenge of our time":

"The only question is which countries will invent, manufacture, and export clean technologies, and which countries will become dependent on foreign products?"

Unfortunately, the United States is headed in the wrong direction. According to Senator Wyden, who chairs the Senate Subcommittee on International Trade, Customs, and Global Competitiveness, "80% of clean energy investments are going to take place outside the United States, even though global trade in environmental goods has doubled just in the last few years."

A recently published report by Senator Wyden's office shows that global exports of environmental goods (the majority of which are associated with clean energy technologies) more than doubled to $215 billion from 2004 to 2008. While U.S. exports have certainly benefited from the major expansion in worldwide demand for clean tech products, it has steadily lost international market share as other nations move more aggressively to capture competitive advantages in the burgeoning clean energy sector.

In the United States, clean tech imports have grown faster than exports, and U.S. exports have not kept up with global demand or international competitors, leading to an erosion of market share for U.S. products. By contrast, other nations, particularly China, have dramatically boosted their exports over the five-year period with China experiencing the greatest value growth in clean tech exports of any nation in the world.

Key figures from the report include:

• The United States is the largest import market of environmental goods (EG) as well as the fastest growing import market from 2004-2008 in terms of product value.
• In the last five years, the U.S trade deficit in renewable energy products increased by 1,400% to nearly $5.7 billion. 
• The United States faces declining export market shares in virtually every regional market, while China has substantially increased its market share in every regional market, over the last five years.

Continue reading "Wyden to Chu: Clean Tech Competitiveness Is the "Challenge of Our Time...Not Clear What the Strategy Is" " »

TIME Magazine recently came out with their Top 10 Green Ideas of 2009. Number 9, "China's green stimulus," cites Breakthrough Institute and ITIF's new report "Rising Tigers, Sleeping Giant," a survey of the state of the clean energy race between the U.S. and Asia.

Here is TIME's Bryan Walsh:

It's the quietest story in environmentalism. In less than a year, China went from a polluting megapower to an up-and-coming clean-tech contender that promises to outpace America. Both countries responded to the recession by authorizing big stimulus plans with significant green components: 34% of China's stimulus money was green, compared with just 12% of funds in the U.S. That's good for the world -- as the low-cost-manufacturing champion, China might be able to churn out enough solar panels and wind turbines at a price the rest of us will happily pay. And the green stimulus is a sign that China, after staying mostly silent on global warming for years, realizes that its old model of pollute then clean up simply isn't sustainable. For the U.S., however, China's gains may mean losses at home. A recent report by the Breakthrough Institute warned that the U.S. could be lapped by Asia in the clean-tech race.

The "Rising Tigers" report can be downloaded here.

In a forthcoming edition of the New Yorker, journalist Evan Osnos has written a great long essay on the role of the Chinese government in clean energy innovation in China.

Osnos documents how, beginning with the 863 program in 1986, Chinese government officials made a conscious effort to "join the new technological revolution" and make investments in science and technology a priority. Nowhere is this decision more evident today than in the rapid development of clean energy technology in China. In 2001, driven by increasing pollution and concerns over energy security, the Chinese government expanded their investment in energy technology. In 2006, the government expanded their commitment even further, and announced targets for the development of a suite of clean energy technologies:

"In 2006, Chinese leaders redoubled their commitment to new energy technology; they boosted funding for research and set targets for installing wind turbines, solar panels, hydroelectric dams, and other renewable sources of energy that were higher than goals in the United States. China doubled its wind-power capacity that year, then doubled it again the next year, and the year after. The country had virtually no solar industry in 2003; five years later, it was manufacturing more solar cells than any other country, winning customers from foreign companies that had invented the technology in the first place. As President Hu Jintao, a political heir of Deng Xiaoping, put it in October of this year, China must "seize preëmptive opportunities in the new round of the global energy revolution."

China's 863 program was modeled in part after the American research system used by NIH and the Department of Defense, the latter of which was instrumental in making early investments in technology that enabled the personal computing and information technology revolutions. And Chinese government investments in research and development (R&D) have been rising dramatically each year:

"R. & D. expenditures have grown faster in China than in any other big country--climbing about twenty per cent each year for two decades, to seventy billion dollars last year. Investment in energy research under the 863 Program has grown far faster: between 1991 and 2005, the most recent year on record, the amount increased nearly fifty-fold."

Continue reading "China's Crash Program for Clean Energy" »

Yesterday, U.S. Senators Jeff Bingaman (D-NM), Orrin Hatch (R-UT), Debbie Stabenow (D-MI), and Richard Lugar (R-IN) introduced bipartisan legislation aimed at accelerating the growth of clean technology manufacturing industries in the United States.

The American Clean Technology Manufacturing Leadership Act would extend a tax credit first introduced in the short-term American Recovery and Reinvestment Act (ARRA) to allow companies to write-off 30 percent of the cost of creating, expanding or re-tooling domestic clean tech manufacturing facilities.

The ARRA program--called the Advanced Energy Manufacturing Tax Credit--provides $2.3 billion in tax credits and has spurred new investments in U.S. clean tech manufacturing facilities. Funding for the popular program is expected to dry up in mid-January but the new legislation would provide an additional $2.5 billion to extend the life of the program.

In a statement on the release of the bill, Senator Stabenow proclaimed that the legislation is critical to boost economic growth, job creation, and U.S. competitiveness in the global clean energy race:

"In order to turn our economy around and create jobs, we need to build the clean energy technology of the future here in America. Otherwise, we will lose the race with other countries and see those jobs go overseas."

Continue reading "Senators Introduce Bill to Boost Clean Tech Manufacturing" »

A new info-graphic from the New York Times, released today as UN climate talks begin in Copenhagen, looks at the "Lessons from Kyoto," the global treaty that's ongoing fate will be the focus of UN climate negotiations beginning today in Copenhagen, Denmark.

The graphic gets the lessons pretty much dead-on, including how little actual progress any nations have made towards meeting their Kyoto "obligations." As the Times notes, "The legacy of the Kyoto Protocol is mixed." Of the 36 wealthy nations who agreed under the 1997 treaty to cut their emissions by an average of 5% below historic 1990 levels, just 18 are on track to meet their targets, almost all of them in Europe.

As the graphic illustrates, the bulk of these "successful" nations are former members of the Soviet bloc, and almost all saw deep economic declines after the fall of the Soviet Union, which conveniently occurred after the 1990 emissions baseline year used in the Kyoto treaty. Deindustrializing Eastern bloc nations, including East Germany, saw big cuts in their emissions and made compliance with the Kyoto protocol easy. Better yet, for these nations, exceeding their Kyoto "obligations" left them with excess credits under the treaty framework that they could sell to other nations struggling to cut their own emissions.

Continue reading "NYTimes Gets "Lessons from Kyoto" Right" »

The United States may be stuck in the middle of a climate conundrum. A proposal to establish border tariffs to account for the carbon associated with the imported manufactured products, like steel, looks critical to securing the support of key swing Senators interested in protecting the competitive position of American manufacturing. ... Yet ... those same tariff provisions that could win passage of a U.S. climate bill are firmly opposed by China and other developing nations and could both damage Sino-American trade relations and fissure international climate negotiations.

Breakthrough's Yael Borofsky wrote that back in October, and this climate conundrum continues to present perhaps the thorniest negotiating point as world leaders prepare to meet for international climate talks in Copenhagen next week. Indeed, on the eve of the global climate talks, the negotiating positions of the United States and major developing economies, including China and India, appear to remain at loggerheads.

In a letter to President Obama today, nine moderate Democratic Senators, all key swings for climate legislation or ratification of any international climate treaty, reiterated their demands that any international climate framework U.S. negotiators sign in Copenhagen must include comparable action from all major economies and allow tariffs to adjust prices on imports from any nation that does not agree to bindings agreements to reduce emissions "in specific trade- and energy-intensive economic sectors."

"Climate change is a serious and growing threat to the United States and the world," the Senators wrote. "Smart climate change policies would guard against these risks while also spurring clean energy investments that promote economic growth and create good domestic jobs."

"Importantly, however, poorly designed climate policies could also jeopardize U.S. national interest," the Senators warned, "by imposing burdens on U.S. consumers, companies and workers without solving the climate challenge."

To address these challenges, the U.S. should seek to negotiate a new international climate agreement under which, "All major economies should adopt ambitious, quantifiable, measurable, reportable and verifiable national actions" to reduce emissions of greenhouse gases.

Furthermore, U.S. climate policy, the Senators wrote, should include provisions to implement border adjustment tariffs if necessary to help shield domestic industries facing international competition from countries that have not implemented carbon reduction requirements for their industrial sectors.

Here's the key excerpt from the letter, signed by Arlen Specter of Pennsylvania, Sherrod Brown of Ohio, Carl Levin and Debbie Stabenow of Michigan, Tim Johnson of South Dakota, Kay Hagan of North Carolina, Claire McCaskill of Missouri, Amy Klobuchar of Minnesota and Mark Begich of Alaska:

Continue reading "Climate Conundrum Continues in Run-up to Copenhagen" »

European and Asian high-speed rail manufacturers are courting U.S. government officials in hopes of securing contracts for some of the $8 billion dollars of federal stimulus funds ear-marked for domestic high-speed rail (HSR) projects.

According to Greenwire, foreign manufacturers are hosting country visits for federal and state government officials to see their high-speed train technologies, as well as dropping not-so-subtle hints that they will build new domestic manufacturing facilities, or expand existing ones, if they are awarded contracts.

States are also feverishly competing for federal funds. According to NPR, forty states and the District of Columbia have already filed applications requesting more than $100 billion for high-speed rail projects. The most ambitious project is a proposed $40 billion, 800-mile HSR network in California spanning from Sacramento to San Diego. Although the Federal Railroad Administration has yet to award any of the $8 billion in government funds to any state or project, companies from Germany, France, Canada, Japan, and China are hoping that early efforts to charm government officials will pay off down the road.

Notably absent from those promoting their HSR technologies are American companies. That's because the United States ceded international leadership in the transportation technology in the 1960s, when Japan became the first nation to construct a national high-speed rail network.

Continue reading "Foreign Manufacturers Compete for U.S. High-Speed Rail Cash" »

Cross-posted from Roger Pielke, Jr.'s Blog

From today's FT:

The United Nations body in charge of managing carbon trading has suspended approvals for dozens of Chinese wind farms amid questions over the country's use of industrial policy to obtain money under the scheme.

China has been by far the biggest beneficiary of the so-called Clean Development Mechanism, a carbon trading system designed to direct funds from wealthy countries to developing nations to cut greenhouse gases.

China has earned 153m carbon credits, worth more than $1bn and making up almost half of the total issued under the UN-run programme in the past five years, according to a Financial Times analysis. The credits are currently trading at about $10-$15 each.

Industrial countries can meet part of their commitments under the 1997 Kyoto protocol to battle global warming by financing projects that mitigate emissions in developing nations. Projects only qualify for credits if the applicants prove they would not have been built anyway, a condition known as "additionality".

The controversy over Chinese wind farms and other CDM projects will intensify calls for the system to be overhauled at the UN's Copenhagen conference, which opens on Monday.

China-based consultants said the CDM's board in Bonn began refusing approval for Chinese wind power projects in the middle of 2009, over concerns Beijing had deliberately lowered subsidies to make them eligible for funding.

"The board now suddenly says the projects are not additional, whereas in the past they found no fault with additionality," said Yang Zhiliang, general manager of Accord Global Environment Technology, one of China's leading CDM consultants. "They are blaming the Chinese government and its decision to lower subsidies."

Ms Yang said Beijing had other aims, such as limiting overcapacity in the wind turbine sector, in setting subsidies. "The Chinese government wouldn't adjust subsidies just to bag CDM money," she said.

Industry officials said the CDM board had refused approval for about 50 wind power projects. Doubts over whether CDM funding will be available in the future has also prompted power companies to stall new wind power investments.

Lex de Jonge, head of the UN board, confirmed that "a handful of [Chinese] projects" had been suspended but declined to give reasons. Michael Wara, of Stanford University, said there were considerable problems in China with the CDM's rules.

With the emphasis that Beijing is now placing on both smaller hydro-electric projects and wind power, the government would have supported at least some of the projects receiving money under the CDM scheme anyway.

"It is hard to believe that there is additionality in many of the energy projects in China right now," he said.

Continue reading "CDM Halts China Wind Projects" »

Last month, U.S. Senators Debbie Stabenow (D-MI), Michael Bennet (D-CO), and Robert Menendez (D-NJ), as well as Congressman Dave Camp (R-MI) introduced the Solar Manufacturing Jobs Creation Act, intended to boost the international competitiveness the U.S. solar manufacturing industry. After introducing the legislation, Senator Stabenow said it was necessary to "help us win the global race against China and other countries to produce solar technology in the clean energy economy."

The bi-partisan legislation would extend the existing solar Investment Tax Credit (ITC), which offers a 30 percent tax credit for solar energy investment and deployment, to cover the construction of new solar manufacturing facilities as well. The ITC was recently given an eight-year extension in the Emergency Economic Stabilization Act (EESA) of 2008.

The new legislation would also give solar manufacturers access to the temporary cash grant program created by the American Recovery and Reinvestment Act (ARRA), which has successfully boosted the deployment of renewable technologies, primarily wind power.

The new U.S. legislation is the second in as many months that aims to support the domestic solar industry. In late October, the U.S. House of Representatives passed the Solar Technology Roadmap Act, which would require the U.S. Department of Energy to appoint a group of experts to create a long-term plan to guide solar energy R&D and the commercialization of next-generation solar technologies. While the bill only authorizes $2.25 billion for solar R&D over the next five years, it represents a sizable increase in funding and a move toward a more strategic and targeted approach to clean energy development.

If the U.S. is to regain its position as a global leader in clean energy technology, and solar in particular, much more targeted policy support is needed. Both the Solar Technology Roadmap Act and the Solar Manufacturing Jobs Creation Act are important first steps forward in developing a comprehensive clean energy economy strategy capable of revitalizing the U.S. economy and making the United States a world leader in clean energy technology once again.

Continue reading "Senators Introduce Solar Manufacturing Jobs Creation Act" »

Cross-posted from Roger Pielke Jr.'s Blog

China has put some numbers on its carbon intensity pledge -- that is, its aim to reduce carbon dioxide emissions per unit of GDP. China has promised to reduced its carbon intensity of GDP by 40-45% by 2020. While a few folks have been fooled (or are trying to fool you) into thinking that it is meaningful, others including the Obama Administration are not fooled. The reality is a bit more subtle and complex than either of these perspectives.

The head of the UN Framework Convention on Climate Change , Yvo de Boer spun the announcement as a breakthrough:

"The US commitment to specific, mid-term emission cut targets and China's commitment to specific action on energy efficiency can unlock two of the last doors to a comprehensive agreement. Let there be no doubt that we need continued strong ambition and leadership,"

In The New York Times, the Obama Administration was a bit less enthusiastic:

A senior Obama administration official said that the United States had pressed hard for a public commitment from China and was relieved that it had delivered. But the official, who spoke anonymously because of the delicacy of the matter, called the carbon intensity figure "disappointing," and said that the administration hoped it represented a gambit that would be negotiated upward at Copenhagen or in subsequent talks.

Understanding the various receptions of the proposed target from China requires understanding a bit of the geopolitical context. Europeans simply want the US and China to come to the table talking about numbers, so any proposal is a step forward. Meantime, the US wants to avoid being cast as the international climate bad guy so will do whatever it can to portray its own proposed 17% cut from 2005 levels as more ambitious that China's intensity target.

But what do the numbers actually mean?

Continue reading "China's Carbon Intensity Pledge" »

The Export-Import Bank of China inked a $2.9 billion deal last week to finance exports of China Energy Conservation Investment Corporation (CECIC), out-doing a $250 million outlay announced by the U.S. Export Import Bank earlier this month.

Charles R. McElwee, based in the Shanghai law office of Squire, Sanders, and Dempsey LLP, told the Wall Street Journal:

"This swamps any U.S. [government] initiatives to support exports,"

China's Ex-Im Bank is also financing the controversial 600 MW Texas wind farm, which will be the first U.S. project to use imported Chinese turbines. The Ex-Im Bank supports companies like CECIC, an energy-efficiency and renewable energy project developer, because they tend to have less access to the global banking system. Government support for clean tech export financing will further boost Chinese exports of energy efficiency and clean energy technologies to international markets, particularly in developed countries, where demand for clean energy technologies is greatest.

Continue reading "Chinese Government to Support Clean Tech Exports with $2.9 Billion" »

"Rising Tigers, Sleeping Giant: Asian Nations Set to Dominate Clean Energy Race by Out-Investing the United States," a large new report released today by the Breakthrough Institute and Information Technology and Innovation Foundation, is the first to comprehensively benchmark the competitive positions of the United States and key Asian challengers -- China, Japan and South Korea -- in the global clean energy race.

The report examines the competitive position of each nation in core clean energy technologies, including solar, wind, and nuclear power, carbon capture and storage, advanced vehicles and batteries, and high-speed rail, as well as the government strategies each nation hopes will strengthen its position in the global clean technology sector. The report also offers recommendations for U.S. federal policymakers for regaining U.S. competitiveness.

Full Report: Download Here (PDF)
Summary Version: Download Here (PDF)
See media coverage and video below

Core findings of "Rising Tigers, Sleeping Giant" include:

Continue reading ""Rising Tigers, Sleeping Giant" Report Overview" »

By Yael Borofsky and Jesse Jenkins

Outcry over a planned Texas wind farm, which will be the first project to import wind turbines from a Chinese manufacturer, has resulted in calls to prevent government stimulus money from funding the project. As Bloomberg reported, in a letter to U.S. Energy Secretary Steven Chu, Senator Charles Schumer insisted that funding only be granted to U.S. manufactured turbines.

"I urge you to reject any request for stimulus money unless the high-value components, including the wind turbines, are manufactured in the United States...China is fast emerging as one of our main rivals in the race to build the technology that can help us achieve energy independence. We should not be giving China a head start in this race at our own country's expense."

But those expressing alarm that money from the stimulus package will accrue to China are forgetting that importing wind turbine components is actually nothing new in the United States. In fact, this story broke at almost that same time that a new investigative report by the American University School of Communication revealed that 84% of the U.S. stimulus money for renewable projects has been given to overseas companies.

Continue reading "The Real Policy Lesson From the Chinese Wind Turbine "Scare"" »

The United States may be stuck in the middle of a climate conundrum. A proposal to establish border tariffs to account for the carbon associated with the imported manufactured products, like steel, looks critical to securing the support of key swing Senators interested in protecting the competitive position of American manufacturing. Without these key swing votes, including Ohio Senator Sherrod Brown and at least nine of his Democratic colleagues, a Senate climate bill has little hope of passing, which climate advocates argue would hamstring U.S. negotiators trying to forge an international climate agreement in Copenhagen this December.

Yet according to the New Scientist, those same tariff provisions that could win passage of a U.S. climate bill are firmly opposed by China and other developing nations and could both damage Sino-American trade relations and fissure international climate negotiations:

"Following lobbying by heavy industries, the US Congress is considering imposing tariffs on imports from China and other developing nations. That could be a deal-breaker for poor nations at December's climate change talks in Copenhagen.

If Congress passes laws imposing a limit on US greenhouse gas emissions, energy-intensive sectors such as steel-making and cement manufacture would almost certainly face increased costs. Competitors in China and other developing nations not subject to similar restrictions - and China has said that it will not set itself an emissions target - might be able to produce steel more cheaply, and take business away from US firms."

With critical Senate Democrats demanding border tariffs, there is no chance the bill will pass without their inclusion. Alternately, China, the world's largest emitter of greenhouse gases, and India will not be inclined to cooperate on an international agreement if they think the final legislation will include border tariffs.

Continue reading "Carbon Border Tariffs Put U.S. In Climate Conundrum" »

Cross-posted from Roger Pielke, JR.'s Blog

I raised this question in an earlier post, suggesting from international statistics that China's energy intensity has improved only by 7.4% since 2005, rather than larger figures more commonly referenced based on data from the Chinese government.

Now, Julian Wong from the Center for American Progress points us to an analysis that he published on his blog showing substantially similar figures using another set of data. With that data the analysis concludes that:

[China's] energy intensity drop for the three year period 2006-2008 is only 7.7%, not the 10% commonly reported.

Before pointing us to the guest post Julian tells us in the comments that:

China's goal is to reduce energy intensity (energy consumption per unit of GDP) by 20% of 2005 levels by 2010. According to its own reports, China has made steady progress in achieving that (it is now at -13.4% of 2005 levels), but because GDP has continued to grow by 8 to 10% over the last few years, absolute emissions have increased.. . the main implication of my point is that while China has done a lot, it will need to do more going forward.

I responded by encouraging Julian to share the broader context of China's "fuzzy math" with his readers over at CAP, it seems like an important part of the story that is too often left out of CAP analyses.

By Roger Pielke, Jr., Senior Fellow

Recently I've seen a number of claims made about China's plans to improve the energy intensity of its economy. Here are some examples:

From the Christian Science Monitor:

Considering the country already has reduced its economy's energy intensity by 20 percent over the past five years, the shift to carbon intensity with a meaningful goal attached "would be significant and impressive," says Reid Detchon, vice president for energy and climate at the United Nations Foundation in Washington.

From Climate Progress:

China appears to be making steady progress toward its goal of achieving a 20-percent reduction in energy intensity by 2010.

Yesterday, Chief UN climate diplomat Yvo de Boer even said of China's policies:

"This suite of policies [alluded to today at the UN] will take China to be the world leader on addressing climate change," he said. De Boer told reporters: "It will be quite ironic to hear that tomorrow expressed in a country (the United States) that is firmly convinced that China is doing nothing to address climate change."

Continue reading "Is China's Energy Intensity Story A Myth?" »

Speeches made today at the UN's climate summit may have left much to be desired in the eyes of countries eagerly hoping for the U.S. and China to make specific commitments to emissions reductions in the run-up to climate negotiations in Copenhagen. Yet, willingness on the part of both nations to invest in clean energy technology may signify more direct action to mitigate climate change than any potentially empty emissions promises.

In his speech this morning, China's President Hu Jintao did not agree to binding carbon emissions targets, however, according to the New York Times, he did outline a four step plan that includes reducing the carbon intensity of the economy to 2005 levels by 2020, boosting nuclear and renewables to account for 15% of China's power, increasing forest cover, and furthering action to develop a green economy. According to the UN Climate Change Conference website, Hu promised to cooperate on climate change efforts so long as they aligned with China's ambitious development goals:

"Climate change is an environment issue, but also, and more importantly, a development issue. We should and can only advance efforts to address climate change in the course of development...Out of a sense of responsibility to the world...China has taken and will continue to take determined and practical steps to tackle this challenge,"

While international leaders have put considerable effort into cajoling China, not to mention India, to accept binding emissions reductions targets by the time climate negotiations commence in Copenhagen this December, China's planned stimulus investment of $440-$660 billion in clean energy over the next ten years is far more indicative of China's willingness to mitigate climate change as it simultaneously grows its own economy.

Continue reading "UN Climate Summit: U.S., China Emphasize Clean Energy Investment, Not Binding Emissions Targets" »

The China Greentech Initiative, a partnership of more than 80 largely Western companies and organizations, released a hefty report (registration required) today projecting that China's massive government investment in its "greentech" industry will drive follow-on private sector investment that could create a national market worth up to US$1 trillion annually.

According to the report:

"Chinese government policies are positive drivers for greentech market development and...stakeholders have clear opportunities to accelerate market development..."

The report evaluates the market potential of a variety of "green" technologies including renewable energy and low carbon transportation, which are expected to be two of the largest growth sectors.

Through strong policies and financial support, the Chinese government has been a major driver of China's clean energy markets. In addition to numerous fiscal incentives and subsidies for clean energy, China's economic stimulus plan allocated 37% of its US$586 billion ($4 trillion yuan) to "greentech" sectors. China is also planning a new stimulus to invest $440 to $660 billion over 10 years focusing specifically on renewable energy.

Continue reading "Business Group Predicts US$1 Trillion Clean Energy Market in China" »

A recent RAND Review provides a slew of recommendations to help China expand the Tianjin Binhai New Area (TBNA) and turn it into a driver of economic progress. As a result of an enormous stimulus package (second only to that of the U.S.) with significant allocations for "indigenous innovation" in science and technology, China may already be well on its way to taking those suggestions to heart, particularly in the clean energy sector.

Tianjin Binhai New Area (TBNA), located in China's Bohai Rim region, has been a strong center for modern industry and manufacturing. But in 2006, the Chinese government mandated that TBNA become the next "regional engine for economic growth." To that end, the area has been the beneficiary of significant government support aimed at making the area the country's next "economic powerhouse" and orienting it towards leadership in providing solutions to national problems: among them, rising energy demand.

According to RAND:

"The goal of TBNA is to present an alternative to the traditional industrial economy, offering China a model of sustainable development and eco-friendly industry. Innovation in science and technology lies at the core of this vision of economic and environmental development."

In the report, RAND offers TBNA guidance in its endeavor to meet China's growing technology needs, both domestically and internationally, by recommending that it pursue seven emerging technologies including cheap solar energy and electric-hybrid vehicles.

Continue reading "RAND: Chinese Region Slated to be Emerging Technology Powerhouse" »

The 1947 Marshall Plan seems to be referenced whenever it becomes clear that an overwhelming social problem can only be solved through large scale government spending. The results of the UN's World Economic and Social Survey 2009 (WESS) revealed the need for just that type of federal investment in order to manage the global climate and energy crisis. And, according to Reuters, the head of Development Policy and Analysis division at the UN department of Economic and Social Affairs (UNDESA), Richard Kozul-Wright, believes it may be time to call on the Marshall Plan framework, yet again, this time to fund a green new deal.

Regardless of past global policy, the UN's WESS enhances the climate debate leading up to the negotiations set to take place in Copenhagen this December, by pointing out the need for a global investment push in clean energy technology, energy efficiency, transportation, and forest-management. Thus far, much of the debate has centered on coercing developing nations to agree to carbon emissions targets - even as rich nations' carbon "commitments" skew towards symbolism over substance. But as WESS explains:

"[M]itigation and adaptation efforts can move forward effectively only if they are part of a consistent development strategy built around a massive investment-led transformation along low-carbon, high-growth paths."

That means giving up on Kyoto's tired call for empty promises to cut emissions. While reducing global carbon intensity was, and is, a primary goal of climate negotiations, targets are not only too narrow a focus to be a viable solution to the climate crisis, they have been shown to be ineffective. As has been explained by the Breakthrough Institute and most recently by Michael Levi, in Foreign Affairs, the Kyoto Protocol is failing because the too weak carbon emissions targets it set are not even being met by the participating countries.

Continue reading "UN Survey Says Massive Global Investment Needed to Fund Developing Clean Energy Economies" »

crossposted from Roger Pielke Jr.'s Blog

The figure above from Reuters shows a proposed set of emissions paths for China from a recent report released by a government think tank in China (previously mentioned here). The Chinese report was heralded by some as marking a significant change of tone from the Chinese, perhaps even making a meaningful international agreement more likely.

In this post I present the assumptions of the rate of decarbonization implicit in the emissions trajectories summarized in the graphic above (I cannot locate the full 900 page report, anyone with a link, please share!). First, here are the annual rates of emissions increases implied by the scenarios above:

	BAU	LOW	eLOW
2010	5.7%	2.5%	2.5%
2020	3.4%	1.8%	1.5%
2030	2.5%	1.2%	0.9%
2040	2.1%	0.9%	0.3%
2050	1.5%	0.7%	-0.6%

I want to call attention to the figures for business-as-usual, which represents a trajectory for emissions increases assuming that no additional policies are implemented beyond those in place today. Does anyone really believe that China's emissions growth will be 3.4% per year to 2020 (much less 1.5% per year to 2050)?

Continue reading "Spontaneous Decarbonization in China's Proposed Emissions Targets" »

By Johanna Peace, Breakthrough Fellow

It's strange to hear of "insourcing"--the transfer of manufacturing jobs into the United States instead of out--but that's exactly what's happening with Denmark's wind giant Vestas, according to a New York Times article yesterday.

According to the report, a combination of global recession and domestic stimulus spending on clean energy is adding up to a boon for the American clean energy manufacturing industry.

In Europe, Vestas has seen several nations slow down their rates of added wind capacity, and flagging government support combined with financial difficulties has impeded the construction of new projects. By contrast, the United States built 8,500 megawatts of wind capacity in 2008 to Britain's 500, and demand for turbine technology is high. So for opportunities in a more robust wind market, Vestas has begun to look across the Atlantic.

Continue reading "US Must Not Blow Its Chance as Foreign Investments Bring Wind Jobs Ashore" »

By Yael Borofsky, Breakthrough Fellow

To some, recent discussion of the "clean energy race" is just the latest iteration of flashy climate change rhetoric, refurbished and repackaged as a do-or-die clean technology race between the U.S. and Asia. Yet, as a New York Times piece entitled "China Racing Ahead of U.S. in the Drive to Go Solar," testifies, the clean energy challenge is more than just verbal tap dancing, it's a dynamic economic competition - and China is earning its racing stripes.

While the U.S. is still floundering with ad-hoc investments in clean energy, China has developed a straight-forward, no-nonsense approach to achieving its 2GW solar capacity target by 2011 and gaining leadership in the solar industry: build market share. With the help of serious government investment, China is on the path to achieving that goal. Chinese companies like, Suntech Power Holdings, have succeeded in driving solar panel price reductions over the last six months by selling panels on the U.S. market below the marginal cost. Furthermore, China is circumventing protectionist legislation by constructing assembly plants in the U.S.

According to Steven Chan, Suntech president for global sales and marketing, the first plant will be located in Phoenix, Arizona and will allow China to tap into the portion of the market that wants to "'buy American' and things like that." The catch, however, is that even though the panels will be constructed in America, by Americans, the components will, of course, be made in China.

Continue reading "NYT: China's Solar Industry Poised to Leave U.S. in the Dust" »

By Johanna Peace, Breakthrough Fellow

In New Delhi today, Indian Prime Minister Manmohan Singh said that India must invest in both new and existing clean energy technologies in order to develop sustainably over the coming decades. This comes as the latest indication of India's progress on building a domestic clean energy economy through investment--a strategy that could also serve as a new approach to international climate policy. Unfortunately, Western nations that stall climate negotiations with their insistence on setting carbon caps continue to miss the world's best chance at forging a global agreement.

Continue reading "Indian Prime Minister Says India Must Invest in Clean Energy Technology" »

By Yael Borofsky, Breakthrough Fellow

A second piece on nationalism in the context of the clean energy race was published on Mother Jones' blog MoJo, and is evidence that the growing body of discourse around this issue has struck a very resonant chord. In the post, entitled "Harnessing Nationalism," Kevin Drum offers poignant, if somewhat veiled, criticism of the rhetoric behind the "clean energy race" narrative.

Inspired by The New Republic's Bradford Plumer, the post starts with a lengthy quote whose primary point is this: the clean energy race is not a zero-sum competition because everyone stands to benefit if China makes a significant effort to reduce emissions by investing in clean technology.

First, as Drum puts it, Plumer's commentary may be an attempt at "intellectual honesty," but honesty doesn't make it completely accurate. True, the whole world will benefit from advancements in clean energy no matter where it comes from, but China is not motivated to compete in the clean tech industry by emissions reductions - it is driven by the potential for economic gain.

As a (rapidly) developing nation, economic development, not emissions targets, is the highest priority. Thus, the race is not about emissions, it is about whose economy stands to benefit from leadership in clean technology.

Drum views the clean energy race through "green" tinted glasses, as well, preferring the "race" rhetoric to the alternative: the apocalyptic narrative that has clearly failed to motivate effective climate change action. Rhetorically speaking, framing the need to reduce carbon emissions as a clean energy race is both more engaging and more productive. As he aptly declares:

If this kind of thing got us to the moon, maybe it can save the planet as well. I say we go along.

The clean energy race, however, is more than just a new and improved framing mechanism or encouragement of America's honed nationalistic tendencies - it is an economic truth. What Drum misses when he writes off the recent proliferation of clean energy articles as hype, is that this issue could both be an effective rhetorical tool as well as a humbling reality.

Continue reading "Nationalism: Rhetoric or Realpolitik, Part 2" »

By Yael Borofsky, Breakthrough Fellow

When the Breakthrough Institute's Michael Shellenberger and Ted Nordhaus began advocating for a paradigm shift in the global approach to climate change in the early 2000's, they could not have predicted that a paradigm shift of another variety might occur simultaneously. That is: a shift in the balance of global power.

In an op-ed entitled, "Rebalancing Relations with China," published in the Washington Post this week, Henry Kissinger assessed the power shift occurring between the U.S. and China, calling for Sino-American cooperation in lieu of boisterous assertions of nationalistic superiority and hegemonic power.

A Nobel Peace Prize winner, former National Security Advisor and Secretary of State during the Nixon Administration, Kissinger is a known proponent of realpolitik. Although that term typically has a negative connotation in the U.S. and is often associated with power abuse, the word actually refers to a theory of politics grounded in the realistic assessment of power, rather than ideology.

In accordance with this theory, Kissinger's puts forth an ideology-free assessment of the current relationship between the United States and China. China's position as America's largest creditor and the economic crisis, in combination, have served to level the playing field between the two nations. Faced with increasing economic interdependence and China's conflicting interest in reducing that dependence, "ambivalence," Kissinger asserts, "is the inevitable consequence."

In Kissinger's estimation, a new political framework that recognizes China as a global economic power will be crucial to revitalizing the world economy. From this standpoint, there are three ways a Sino-American relationship could play out on the global stage.

Continue reading "Nationalism: Rhetoric or Realpolitik, Part 1" »

Crossposted from Roger Pielke Jr.'s Blog

The Financial Times is encouraged by China's statement that they would like to see their emissions peak by a date certain:

Most developing countries stubbornly resist western admonitions on the need to cut carbon emissions. Until recently, that included China, but signs from what is now the world's largest emitter suggest a cultural revolution is afoot in its attitude to climate change policy.

For the first time, two senior climate change officials, Yu Qingtai and Su Wei, have left open the possibility that China will plan for an eventual peak in emissions. "Emissions will not continue to rise beyond 2050," said Mr Su.

The FT says with an apparent straight face that:

As a quantitative measure of China's intention to help fight climate change, the statement fails to overwhelm.

China's emissions have been increasing at around 8% per year. If China can somehow cut this rate in half and maintain it until 2050, then China's emissions in 2050 will still exceed the total global emissions in 2009.

Pop the champagne!

By Johanna Peace, Breakthrough Fellow

Here's the current climate stalemate: While US and EU negotiators keep pushing for an international treaty based on cutting emissions, developing nations like China and India keep refusing to adopt hard emissions caps. But according to a new report by the Center for Clean Air Policy, those emission caps are too hard to measure and monitor in developing nations, anyway. Instead, the report concludes, developing countries should adopt a new approach to increase efficiency in their most energy-intensive industries by setting measurable clean energy technology targets.

Dan Klein of CCAP, a co-author of the report, explained:

"To be able to say we're going to improve our emissions intensity by 5 percent, that's a nice concept. But to be able to actually do that means ... you have the ability to measure industrywide what you're doing now and what you're doing after."

On the other hand, "It's not such a difficult thing to count the number of plants that have a certain technology," Klein said.

Continue reading "New Report Recommends Technology Deployment Targets to Decarbonize Industry" »

By Yael Borofsky, Breakthrough Fellow

Imagining China as a giant green frog seems a little ridiculous, but, as Peter Ford of the Christian Science Monitor reported last week in a piece entitled "China's Green Leap Forward," China's intent to "leapfrog" the United States in the clean energy race is far from ridiculous - it may soon be a reality.

While the U.S. languidly inches forward in clean energy RD&D, China's burgeoning clean and renewable energy industries are growing at an unprecedented pace for a developing nation. Much more than a response to the suffocating pollution clogging the airways of its major cities, the explosion of clean energy technology is part of a national strategy to dominate the industry. As Ford succinctly puts it:

"China price" and "China speed" are poised to snatch the lion's share of the next multitrillion-dollar global industry - energy technology... Indeed, China is pushing ahead on renewable technologies with the fervor of a new space race.

Indeed, China is approaching clean energy with a "space race" mind-set, however, the U.S. has yet to adopt the same sense of urgency. As Americans wait for a Senate decision on the significantly weakened American Clean Energy and Security Act (H.R. 2454), which will invest just $1 billion per year in clean energy R&D and $10 billion for clean energy investments broadly defined, China has already implemented a suite of clean energy policies beginning with the Renewable Energy Law of 2006.

By supporting the growing wind sector with subsidies, tariffs, and an obligatory renewable energy requirement for power companies, China now expects wind manufacturing to grow from 8GW in 2007 to between 12GW and 20GW by 2010. In comparison, the U.S. manufactured just 2.4 GW of wind turbines in 2007 despite having the largest wind market in the world.

Continue reading "CS Monitor: China Aims to "Leapfrog" U.S. in Clean Energy Race" »

by Breakthrough Fellow, Siddhartha Shome

India reiterated its staunch refusal to adopt binding emission reduction targets today, when Indian environment minister Jairam Ramesh blamed developed nations for failing to fulfill the promises they made under the Kyoto Protocol. He called this failure--not India and China's resistance to emission caps--the "single biggest issue" currently standing in the way of international climate talks.

Ramesh told a foreign press conference in New Delhi that India is committed to "a meaningful international agreement that all countries will take seriously and implement, unlike Kyoto where countries took on legal obligations and reneged on them."

"Just because we draw attention to the hypocrisy of the West does not mean that we are not conscious of our own responsibility," he said, adding that India has a right "to be recognised as latecomers and stepchildren of the Industrial Revolution."

This comes as the latest in a string of increasingly sharp criticisms from India and China as they maintain their opposition to an international treaty based on reducing emissions.

Continue reading "China and India Reject Carbon Caps" »

100 miles southwest of Beijing, a green revolution is underway; and it began, as Peter Ford of the Christian Science Monitor reports, with a "bad case of smelly fish".

Yu Qun had only recently been elected mayor of Baoding, China when fish in the region's largest lake began to die by the thousands. In his mind, this could only be the direct result of pollution from the several hundred factories which lined the river's banks. So Mr. Yu took a drastic but, in the long run, incredibly fortuitous step: he closed the factories.

This move cost his city large points at first with the Central Government. His annual economic growth was down almost two percentage points; but Mr. Yu had a plan:

"Polluting first and cleaning up later is very expensive," says the boyish-looking mayor, a former college math teacher. "So we chose renewable energy to replace traditional industry."

In three years, Yu has transformed Baoding from an automobile and textile town into the fastest-growing hub of solar, wind, and biomass energy-equipmentmakers in China. Baoding now has the highest growth rate of any city in Hebei Province. Its "Electricity Valley" industrial cluster - consciously modeled on Silicon Valley - has quadrupled its business.

Continue reading "Is the Silicon Valley of Clean Energy Growing in China?" »

By Leigh Ewbank, Breakthrough Fellow.

In yesterday's Washington Post, prominent U.S. business leaders John Doerr (from Kleiner Perkins) and Jeff Immelt (CEO of GE) joined the growing chorus calling on the nation's leaders to prepare America for the clean-energy race. They warn that the U.S. is quickly falling behind in "the next great global industry" -- green technology -- with the risk of damaging America's economic competitiveness.

Doerr and Immelt's observations mirror recent reporting by the Breakthrough Institute and several major news sources -- including Time, Washington Post, and the Wall Street Journal -- that show the U.S. trailing Asia in terms of clean-energy investment and deployment. On the question of which nation is leading the U.S. in the clean-energy race, Doerr and Immelt don't mince their words:

"We are clearly not in the lead today. That position is held by China, which understands the importance of controlling its energy future. China's commitment to developing clean energy technologies and markets is breathtaking.

Consider: Chinese cars are more than one-third more fuel-efficient than U.S. cars. China is investing 10 times as much on clean power, as a percentage of gross domestic product, as the United States is. China is on track to create 150,000 jobs through the deployment of 120 gigawatts of wind power by 2020 -- an amount equivalent to today's global total and nearly five times America's."

Continue reading "U.S. Business Leaders Urge America to Get Serious about the Clean Energy Race" »

By Yael Borofsky, Breakthrough Fellow

Lying in the rejected scrap heap created by the Senate's passage of the Energy and Water Appropriations Bill (H.R. 3183) is RE-ENERGYSE, President Obama's $115 million energy education program that he proposed last April.

Designed to usher in a new generation of young clean energy innovators by improving education in math and science, RE-ENERGYSE (REgaining our ENERGY Science and Engineering Edge) was a crucial part of Obama's plan to drive our nation's transition to a clean energy economy and maintain global competitiveness in the race for clean energy. Unfortunately, the Senate roundly disregarded Obama's vision to meet the clean energy challenge when it appropriated none of the $34.3 billion in energy spending last week towards the program. Meanwhile, the House only appropriated $7.5 million to perform an assessment study.

By providing necessary educational resources and research opportunities, RE-ENERGYSE is precisely the kind of program the United States needs in order to inspire students to pursue careers in clean energy fields. Had it received funding, the program was slated to prepare approximately 8,500 talented young scientists and engineers to enter the clean energy workforce by 2015 - just for starters. What Congress has failed to recognize is that this fundamental investment in our nation's youth is critical to facilitating a rapid transition to a clean energy economy.

According to a recent op-ed in the San Francisco Chronicle by the Breakthrough Institute's Jesse Jenkins and Teryn Norris, only around 15% of undergraduate degrees in the U.S. are awarded in the fields of math and science. And as Wall Street investment firms aggressively recruit the nation's top students -- not just in economics and finance, but in math, engineering, and physics -- more and more of our nation's best and brightest scientific minds are directed away from clean technology innovation and into the financial sector.

Continue reading "Congress Rejects Obama's Vision for Energy Education, Universities Demand More" »

On Monday, Joe Romm of Climate Progress publicly attacked the Breakthrough Institute for publishing an op-ed in the San Francisco Chronicle -- called "Will America lose the clean energy race?" -- which urged Congress to fully fund President Obama's energy education initiative and scale up direct pubic investments in clean energy to boost U.S. economic competitiveness and accelerate the nation's transition to a clean energy economy.

Romm never mentioned the central focus of the op-ed -- President Obama's energy education program (RE-ENERGYSE) and the Breakthrough Institute's efforts to rally support behind this program -- and instead attacked it for what he calls "willfully misleading nonsense" about Asian countries' planned investments in clean energy, while apparently defending the smaller investments in the proposed Waxman-Markey American Clean Energy and Security Act.  

Romm asserts that the op-ed "attacks" President Obama and Democratic leaders, when in fact the op-ed is aimed at supporting the President's RE-ENERGYSE program and calling for larger public investment in clean energy to compete with Asian challengers.  The RE-ENERGYSE initiative is currently in danger of being cut by Congress at a time when the U.S. is severely lagging in energy science and technology education, and last week the Breakthrough Institute organized over 100 universities, student groups and other organizations to submit a letter urging Congress to fully fund the initiative.

Romm makes several factually incorrect statements about Asia's plans for clean energy investment that contradict research in publicly accessible reports and analyses, including those by the Center for American Progress (which employs Romm).  Here is a fact check to correct Romm's misstatements and clarify the details of investment plans in Asia:
    
1.  The op-ed states, "China alone is reportedly investing $440 billion to $660 billion in its clean-energy industries over 10 years."

Romm's response:

"the China figure -- while it is certainly impressive and definitely should motivate U.S. action (as I have argued) -- is "reported" and cumulative over 10 years.  It is part of their stimulus and NOT just R&D, but an investment in clean-energy industries broadly defined"

Facts: China's planned investment of $440-$660 billion over 10 years is indeed part of an economic stimulus package, but not the original $586 billion stimulus that is passed late last year, as Romm implies.  The new investment, according to a recent paper by Andrew Light and Julian Wong of the Center for American Progress (CAP), is part of a planned second stimulus package that is "dedicated solely to new energy development over the next decade, including generous investments in wind, solar and hydropower."  China is planning to make a sustained commitment to clean energy investment by building on the clean energy investments in their first stimulus package rather than being content with a one-time investment. 

China's massive clean energy investment plan is indeed "reported," or planned.  A top source for Breakthrough Institute's figures are analysts at CAP, who have repeatedly published the same figures, including recently in Congressional testimony.  These numbers were reported early by the AFP and have since been republished several times, including recently by the Washington Post in an article similar to Norris' and Jenkins' op-ed, titled "Asian Nations Could Outpace U.S. in Developing Clean Energy."

The Breakthrough Institute has never suggested that China's investment is centered solely around R&D, nor have we suggested that U.S. clean energy investments should be solely focused on R&D, despite Romm's ongoing effort to misrepresent our position, which strongly supports direct public deployment of clean energy technology (see here for a summary of Breakthrough's clean energy investment policy recommendations). 

Continue reading "Joe Romm Ignores Facts in Attacking Breakthrough Institute Op-Ed" »

By Leigh Ewbank, Breakthrough Fellow

This week marks the 40th anniversary of Neil Armstrong's moonwalk, the event which made the US the first and only nation to accomplish one of the greatest technological feats in human history. While space-race aficionados will argue that US-Soviet competition continued beyond the 1969 moon landing, for the layperson, Armstrong's 'small step' marked the end of the space race.

In 2009, the United States faces a new global competition, one that will have far greater implications for the future of our nation and the world: the clean energy race

The dual challenges of climate change and increased economic competitiveness are driving nations to develop new energy technologies that harness earth's abundant renewable resources. This technology is increasingly viewed as central to our economic fortunes with renewable energy and other clean technologies poised to be the next big growth sector. On several occasions President Obama has acknowledged that:

'The nation that leads the world in creating new sources of clean energy will be the nation that leads the 21st century global economy.'

We've heard calls for a New Apollo project for renewable energy before, and I will not discuss the merits of such a scheme here. Instead, on this historic anniversary, I will compare the space race of the Cold War era and the clean energy race of today--both similarities and differences are apparent, and both offer insights into America's current standing in today's clean energy race.

Continue reading "40th Anniversary of the Moon Landing - Lessons for the Clean Energy Race" »

By Yael Borofsky, Breakthrough Fellow

As Congress debates the Waxman-Markey climate bill, Asia is moving rapidly to win the clean energy race. So warns a new article in the Washington Post today that should serve as a wake-up call to America's leadership at the highest level.

The new investigative article by Steven Mufson, entitled "Asian Nations Could Outpace U.S. in Developing Clean Energy," confirms increasingly urgent warnings issued by many, including the Breakthrough Institute, that the United States must dramatically increase direct investments in a clean energy technology push, or be quickly left behind by China, South Korea, India, Japan and others.

Despite Obama's intentions to increase America's international competitiveness, the article reports that the amount and scale of investments in renewable energy programs coupled with ambitious renewable energy use targets are putting these Asian nations on pace to surpass programs set forth by both the U.S. economic stimulus package and the American Clean Energy and Security Act, the massive climate and energy bill recently passed by the U.S. House of Representatives.

Citing Breakthrough's Jesse Jenkins, the article warns:

"If the Waxman-Markey climate bill is the United States' entry into the clean energy race, we'll be left in the dust by Asia's clean-tech tigers," said Jesse Jenkins, director of energy and climate policy at the Breakthrough Institute, an Oakland, Calif.-based think tank that favors massive government spending to address global warming.

Much of the G8 climate discussions last week were stymied by China and India's outright refusal to accept an international (or any) ceiling on greenhouse gas emissions. Meanwhile, the Washington Post reports, both countries, as well as South Korea, are forging ahead with dramatic steps to ramp up their renewable industries in ways that will reduce their emissions while flexing their strengthening clean-tech R&D muscles.

The full article can be read below...

Continue reading "Washington Post: Asia's Clean Tech Tigers Surging Ahead in Clean Energy Race" »

By Johanna Peace, Breakthrough Fellow

While the US mires itself in controversy over the weakened cap-and-trade bill working its way through Congress, China and India have begun to look ahead with new government investment policies that rapidly expand solar power capacity in each country.

China recently announced a dramatic increase in its expected solar capacity target for 2011, planning to reach 2 GW within the next two years. Already, China has expanded its 2020 target from 1.8 GW to 20 GW-that's more than triple the amount of PV solar power installed in the entire world during 2008, the industry's best year ever. (Since details of China's planned $440-$660 billion renewable energy stimulus package have not yet been released, the precise figure for China's new 2020 solar target remains uncertain. Some Chinese reports put the number at 20 GW, while other experts say this is an upper-bound of estimate of what China expects to achieve with its new massive investments in renewable technology.)

Continue reading "China and India Launch New Solar Energy Projects" »

By Johanna Peace, with Leigh Ewbank and Devon Swezey, Breakthrough Fellows

Historically, the United States has been the nation with the capacity and determination for large-scale investments in promising new technologies--but not this time. Now it's China's turn. In the coming weeks, China will unveil an unprecedented multi-billion dollar investment in renewable energy.

The details are sketchy, but China is reportedly developing a massive renewable energy investment plan. While little is known about the precise level of expenditure the Chinese will commit to research, development and deployment (RD&D), if it's anywhere between the US $440-660 billion over ten years reported by AFP and the Center for American Progress then it'll be an unprecedented investment in the new energy economy.

What Do We Know About China's Investment Plan?

A Chinese Energy Administration official has confirmed that the investments will number at least $440 billion over 10 years. However, there is still uncertainty about the range of investments and the date when the Chinese Government's renewable energy plan will be revealed. A report by the state-run news service Xinhua identified China's top economic planning body, the National Development and Reform Commission, as responsible for drafting and implementing the plan. According to Shi Dinghuan of the Chinese Academy of Sciences, NDRC has already produced a draft of the renewable energy stimulus, though Breakthrough research has turned up no publicly available copy.

Continue reading "China's Big Plan to Win the Clean Energy Race" »

By Johanna Peace, Devon Swezey, and Leigh Ewbank, Breakthrough Fellows

It's official: India won't accept binding caps on its emissions of greenhouse gases. Indian Environment Minister Jairam Ramesh made the case clear last Thursday:

"India will not accept any emission-reduction target--period," Ramesh said. "This is a non-negotiable stand."

India's announcement is the latest frustrating news for those following the efforts of climate negotiators as they struggle to eke out an international agreement by this December's UN summit in Copenhagen. It's frustrating because the fundamental dissonance between what developed countries demand and what developing countries are willing to give appears to be the single most intractable roadblock standing in the way of a successful treaty. In fact, this very problem has impeded progress on international climate negotiations for decades.

Continue reading "Road to Copenhagen: The Need for a New Framework" »

By Johanna Peace, Breakthrough Fellow

By mid-July, China will begin construction of a massive wind farm project in the northwestern Gansu province, at a total cost of US $17.6 billion. It will be China's biggest wind power station yet; according to local Development and Reform Commission official Wu Shengxue, it will reach an installed capacity of 20 GW by 2020. Eventually, the wind power capacity of the area is projected to reach 40 GW.

This development is the latest in what has recently been a major push by the Chinese to expand renewable energy use. Soon, Chinese officials are expected to reveal a new renewable energy stimulus plan of US $44-$66 billion per year over ten years, which will focus much of its resources on wind power. Under the plan, China will be on track to reach 100 GW of wind power capacity by 2020--more than eight times its current level.

By contrast, the American Clean Energy and Security Act invests only $6-12 billion per year in clean energy. As for the US "green stimulus," it includes a one-time clean energy spending boost of $112 billion--just half of China's $221 billion stimulus investment in green initiatives. Here's a sense of scale: If US investments in clean energy were on par with the Chinese in terms of percent GDP, we'd be spending $140-210 billion per year.

Continue reading "China to Build World's Largest Wind Project" »

"If China is going to put in $440-660 billion [in clean energy development investments this year], how will $190 billion (actually under $130 billion) over 20 years put us in the leadership position?"

-Get Energy Smart blogger A. Siegel remarking on how far the Waxman-Markey American Clean Energy and Security Act really gets us in the race for clean energy innovation, responding to an op ed by Rep. Ed Markey.

Driven largely by strong economic growth in developing nations, world energy consumption will grow 44% between 2006 and 2030, according to updated projections released Wednesday by the U.S. Energy Information Administration.

The EIA reports:

World marketed energy consumption is projected to grow by 44 percent between 2006 and 2030, driven by strong long-term economic growth in the developing nations of the world, according to the reference case projection from the International Energy Outlook 2009 (IEO2009) released today by the Energy Information Administration (EIA).

The current global economic downturn will dampen world energy demand in the near term, as manufacturing and consumer demand for goods and services slows. However, with economic recovery anticipated to begin within the next 12 to 24 months, most nations are expected to see energy consumption growth at rates anticipated prior to the recession. Total world energy use rises from 472 quadrillion British thermal units (Btu) in 2006 to 552 quadrillion Btu in 2015 and then to 678 quadrillion Btu in 2030.

In the decades ahead, the world's rapidly developing nations will clearly demand abundant and affordable energy to power their economic growth. The question remains: what will the nations of the world do to ensure that demand is met by clean and cheap energy technologies?

Continue reading "EIA: World Energy Use Will Rise 44% By 2030; Developing Nations Demand Abundant, Affordable Energy" »

By Michael Shellenberger and Ted Nordhaus

We have a post up at Salon today that criticizes cap and trade legislation in the House (Waxman-Markey). We argue that it cannot achieve the clean energy revolution we need. Compromises will no doubt be necessary to pass climate legislation in Congress, but as currently drafted, Waxman-Markey looks like it will make all the wrong compromises, allowing firms to buy dubious and sometimes phony carbon offsets rather than invest in clean energy, giving away billions of pollution allocations to incumbent energy interests for free, and committing a fraction of the funds needed for direct public investments in clean energy research, development, and deployment.

We propose an alternative cap and trade, which would explicitly cap the price of carbon dioxide pollution at roughly $10 per ton, rising over time, would auction all pollution allowances with no free giveaways and no offsetting, and would use the vast majority of the revenues, about $60 billion a year, to fund the accelerated development and deployment of clean energy technologies. We believe that such a solution would more rapidly achieve the technological innovations we need at a lower cost. It is also great politics, given strong public support for government investment in clean energy technology. This is the same position we have held since 2007, when we laid out this basic approach in Break Through and other writings.

Continue reading "The Cap and Trade We Need" »

At a public event at an efficient co-generation power plant in China, Secretary of State Hillary Clinton and Obama Climate Envoy Todd Stern both discuss the importance of partnership and collaboration to develop and deploy clean, cheap energy technologies to power sustainable development in China.

Are these the first signs of a new Obama Administration strategy for U.S.-China engagement on climate change? Are Clinton and Stern preparing to embark on a strategy focused explicitly on harnessing the best and brightest researchers, entrepreneurs and businesses and leveraging major investments on both sides of the Pacific to develop and deploy clean, cheap and scalable energy sources?

I'll be writing more about this tomorrow, but for now, the full transcript of their remarks are below. I'm interested in your reaction to these remarks and your thoughts on how the United States and the Obama Administration should engage China to ensure a climate stability and to help drive sustainable development in China?

Continue reading "Sec. of State Clinton and Obama Climate Envoy Discuss U.S.-China Clean Energy Collaboration" »

An article in last week's New York Times delved into Japan's "Lost Decade," - the prolonged period of economic stagnation that hit the nation in the 1990s - and explores what lessons for U.S. stimulus efforts can be learned from Japan's efforts to restart their economy. The article's findings echo some of the arguments Breakthrough has been making regarding the stimulus debate. Japan's stimulus missteps reinforce the argument that our recovery program should be focused on modern infrastructure--not traditional public works--in addition to spending on other national priorities such as energy and education.

The Times story begins with a look at which types of public spending helped Japan grow out of its recession, and which types stifled recovery:

[I]t matters what gets built: Japan spent too much on increasingly wasteful roads and bridges, and not enough in areas like education and social services, which studies show deliver more bang for the buck than [traditional] infrastructure spending.

"It is not enough just to hire workers to dig holes and then fill them in again," said Toshihiro Ihori, an economics professor at the University of Tokyo. "One lesson from Japan is that public works get the best results when they create something useful for the future."

Continue reading "Lessons from Japan: How to Avoid A "Lost Decade" in America" »

By Teryn Norris & Jesse Jenkins

As the prospects for high carbon pricing and cap and trade continue to diminish in the midst of a severe economic recession, some climate advocates are beginning to wonder: is there any alternative?  In a recent op-ed we wrote for the Huffington Post, we argued:

Despite Obama's appointments, climate advocates are thus left to worry: is Obama really prepared to expend his political capital championing a policy that will increase U.S. energy prices in the midst of a recession?

Not likely. Until recently Obama voiced support for carbon regulation, declaring at a governors' climate conference in mid-November that his climate agenda "will start with a federal cap and trade system." But since then, as the recession has deepened, he has said little to nothing about cap and trade...

A serious alternative to cap and trade would focus on making clean energy cheap, prioritizing major, sustained public investments to drive down the price of green technologies as quickly as possible. This would require federal investments on the scale of $500 billion over the next decade to support and accelerate each stage of the energy innovation pipeline: research, development, demonstration, and deployment.

Matthew Yglesias, an author and writer at the Center for American Progress, addressed this issue directly in a post yesterday titled "No Alternative," where he argued there is no better alternative to carbon pricing:

Continue reading "Setting climate priorities straight" »

Dominic Lawson, columnist for the British newspaper "The Independent," issued a scathing condemnation of the Poznan Climate Talks aimed at renewing the Kyoto Protocol after 2012:

The truth, however, is that Kyoto, as a means to reduce carbon emissions, has been like Monty Python's parrot, long dead, despite all the protestations to the contrary by its salesmen.

You don't have to be a "climate change sceptic" to assert this unwelcome fact. Professor Gwyn Prins, Director of the LSE's Mackinder Centre for the Study of Long Wave Events, has been advocating measures to reduce what he sees as man-made climate change since 1986. He was a lead author on the Third and Fourth Assessment Reports of the Intergovernmental Panel on Climate Change, and on the Advisory Board of Friends of the Earth UK. For some years now, Prof Prins has been warning that the Kyoto approach is hopelessly flawed - and his unpopularity in the environment ministries of Europe has grown, precisely as his criticisms of their approach have been vindicated.

Continue reading "Kyoto: Like A Parrot Long Dead" »

Gwin Pryns, author of "The Wrong Trousers: Radically Rethinking Climate Policy (pdf)," recently published "Time to Ditch Kyoto: the Sequel." The short pamphlet was handed out at the United Nations Climate Change Conference in Poznan, Poland.

Towards the end (pdf), Prins summarizes his point about a new direction for an international agreement on climate change:

"Poznan has an opportunity to... put in place the foundations and essential architecture for a radically re-engineered climate policy for adoption at the Copenhagen meeting next...That architecture will not depend upon carbon trading in the present form; it will not lead with emissions targets tied to specific dates (although benchmarks are part of the sectoral strategy for reducing energy intensity); it will not focus upon international legal agreements that are dubiously enforceable, if at all."

Continue reading "Prins to Poznan: Seriously, Time to Ditch Kyoto" »

The stark tone of the International Energy Agency's World Energy Outlook 2008 is a dramatic departure from their normally staid and frequently rosy projections about the world's energy future (I presented highlights from the piece in this proceeding post). The report's opening statement that current world energy trends are "patently unsustainable" will no doubt receive the most attention in headlines across the blogosphere and mainstream news. But in this post, I want to delve deeper into the key statement that follows it:

"It is not an exaggeration to claim that the future of human prosperity depends on how successfully we tackle the two central energy challenges facing us today: securing the supply of reliable and affordable energy; and effecting a rapid transformation to low-carbon, efficient and environmentally benign system of energy supply."

While the environmental community focuses primarily on the latter of those two concerns, the IEA appropriately recognizes that the future of human prosperity depends on our ability to tackle both challenges: decarbonizing the energy supply and providing ample and affordable energy supplies to power global development.

In short, the IEA confirms what is perhaps the central challenge of the 21st century: developing clean and affordable energy sources to power the globe.

Continue reading "IEA Report Confirms Clean and Cheap Energy Needed to Power Global Development" »

The world's energy watchdog, the International Energy Agency, released their annual World Energy Outlook report today, and it starts out with a bang. The first paragraph of the IEA report reads:

"The world's energy system is at a crossroads. Current global trends in energy supply and consumption are patently unsustainable - environmentally, economically, socially. But that can - and must - be altered; there's still time to change the road we're on. It is not an exaggeration to claim that the future of human prosperity depends on how successfully we tackle the two central energy challenges facing us today: securing the supply of reliable and affordable energy; and effecting a rapid transformation to low-carbon, efficient and environmentally benign system of energy supply. What is needed is nothing short of an energy revolution."

Continue reading "World's Energy Watchdog Warns Current Energy Trends are "Patently Unsustainable"" »

China's greenhouse gas emissions could more than double by 2020, according to a new report released by the Chinese Academy of Sciences.

Beijing has been reluctant to release official data on greenhouse gas from the nation's fast-growing use of coal, oil and gas. This new study from the state-run institute breaks that reticence and sends another clear reminder that China is where our quest for climate stability will be won or lost.

"To a significant degree, our planet's energy and environmental future is now being written in China," says the study's authors. And the only way that story has a happy ending is if China has access to clean and cheap energy sources to power its sustainable development.

Continue reading "China's Greenhouse Gas Emissions Could Double in Coming Decade" »