SOLAR TODAY - June 2010

perspective
SOLAR TODA Y®

Leading the RenewabLe eneRgy RevoLution soLaRtoday.oRg

Others Lead while the united states slips

In per capita investment in clean energy, we’re not even in the top half.

by BRAD COLLINS

For some years, we’ve urged in this column progress toward energy independence, a healthier environment and a sustainable economy, through the broad and aggressive deployment of renewable energy technologies, energy-efficiency measures, smart transportation and energy-conscious urban planning. Much of our recent work at the American Solar Energy The jobs reports have clearly identified the three elements that help states (and provinces) attract and hold green jobs and businesses. First, they create a ready internal market for renewable energy and energy-efficiency (RE/EE) products, driven by renewable portfolio standards and comparable policies. Second, they offer state incentives for researchers, manufacturers and installers to locate there. And third, the governor takes strong leadership in marketing the state to RE/ EE businesses.

This summer, stakeholders in Washington, D.C., will discuss changes in U.S. energy policy and possible action on climate legislation. Two recent reports, from the Pew Charitable Trusts and the Center for American Progress, show what is at stake economically for the United States.

In March, the Pew Charitable Trusts published “Who’s Winning the Clean Energy Race?” (tinyurl. com/y9gchaq). It forecasts that global clean energy investments will grow this year by 25 percent, to $200 billion, dominated by spending in the G- 20 countries. This continues a recent trend of greater emphasis in the developed world on renewable energy research, manufacturing and deployment, all of which help to create exports.

As in the leading states and provinces in North America, the countries winning the global race for

Brad Collins is the executive director of the American Solar Energy Society ( ases.org).

green jobs have three elements in common: First, they have adopted comprehensive energy policies and thus created internal markets for renewable energy deployment (Germany, Spain, China, India and Japan, for example). Second, they provide incentives for manufacturers and exporters to compete globally. All the G- 20 countries, absent South Africa, have RE/EE tax incentives. Finally, the leaders of these countries promote the economic promise of broad RE/EE deployment.

The United States has now implemented these elements, but is still falling behind in the race to lead the green economy revolution. Why? Research has shown three additional factors leading to competitive success. First, a comprehensive strategy for development of a low-carbon economy is needed. The United States needs to engage in a long view of how best to move from a high-carbon to a low-carbon energy economy.

Second, there needs to be active support for national, binding carbon emissions reduction targets. In “Out of the Running? How Germany, Spain, and China Are Seizing the Energy Opportunity and Why the United States Risks Getting Left Behind,” the Center for American Progress ( tinyurl.com/ydy4vzp) reports that countries that have signed onto the Kyoto Protocol are significantly outpacing the United States in clean technology innovation, as measured by such indices as green-tech patents. (See page 25.)

Third, the level of investment in RE/EE technology ultimately drives markets. The United States is second in the world, behind China, in low-carbon energy investment. We invested $18.6 billion last year compared to China’s $34.6 billion, so we’re trailing by 45 percent. In terms of investment intensity (investment per capita), in the G- 20, we are not in the top half.

In a global race to lead the green economy, we’ve accelerated to 40 mph, while the pack has hit 70 mph. They’ll be out of sight soon, and we will never catch them unless we pick up the pace.

We can lead the renewable energy revolution, or we can import it. The choice is ours to make.

Brad Collins: Executive Director/Publisher publisher@solartoday.org Editorial Gina R. Johnson: Editor/Associate Publisher editor@solartoday.org Seth Masia: Deputy Editor Corey Dahl: Managing Editor Dona Mc Clain: Sales Coordinator/Editorial Assistant Richard Haight: Proofreader Solartoday.org Brooke Simmons: Manager of Online Publishing Design Allison J. Gray: Art Director Peggy Doyle: Designer Dan Bihn: Photojournalist Contributors Richard Crume, Rona Fried, Chuck Kutscher, Joseph Mc Cabe, Liz Merry, Mick Sagrillo, Ken Sheinkopf, Robert Ukeiley Advertising Sales Annette Delagrange: Director of Sales adelagrange@solartoday.org Kris Ohrenick: Northern U.S., Calif. and European Sales Manager kohrenick@mcneill-group.com 800.394.5157, ext. 31 Stefanie Lauff: Southern U.S. and Asian Sales Manager slauff@mcneill-group.com 800.394.5157, ext. 26

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