It’s the Chinese, Stupid

Published by National Journal’s Energy & Environment Expert Blog

It’s time to take off the kids’ gloves in the energy debate.

For the last five years, clean-tech advocates have extolled the potential benefits of a clean energy economy. You know the drill: millions of new jobs; freedom from oil; better technologies and cleaner air.

Where have we gotten in terms of policy outcomes? Besides ARRA’s clean energy investments and higher fuel mileage standards, practically nowhere, and the clean energy industry is poised for a crash, as my colleagues argued on this forum.

Meanwhile, on the political front, we are witnessing one of the harshest backlashes against the role of government and public investment in U.S. history. The Tea Party has successfully hijacked the national agenda to focus on deficit reduction at all costs, even with unemployment above 9%. Science and technology budgets are under attack across the board, with the recent House Appropriations bill slashing budgets for energy innovation, NIST, NASA, and the Office of Science and Technology Policy, which was cut by over 55 percent. What will emerge from the Joint Committee on Deficit Reduction – or what the outcome will be if it fails to reach a deal – is highly uncertain, but it could result in even more draconian cuts to energy and technology budgets.

The bottom line: clean energy and innovation advocates across the board are losing. Badly. No matter how grand the benefits of a sensible economic policy proposal might be – whether in clean energy or other sectors – extolling these benefits is hardly a winning approach in today’s political environment.

Hence the need to take off the kids’ gloves and develop a new strategy.

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The National Journal just published our response to Tuesday’s White House energy and climate summit, following contributions by the CEO of the American Wind Energy Association, CEO of the George C. Marshall Institute, and a Director of Policy at Brookings Institution.

Third Way For Energy And Climate Bill

NationalJournal.com | June 30, 2010

This is a guest post by Teryn Norris, director and founder of Americans for Energy Leadership and senior advisor at the Breakthrough Institute.

Tuesday’s White House energy summit drove yet one more nail into the economy-wide cap and trade coffin, with Senator Kerry declaring “we’re prepared to compromise further.” The compromise gaining momentum is a scaled-back, utility-only approach. But if President Obama and Senate leaders want to deliver a real victory on energy and climate policy reform, they should move quickly to advance a third way approach based on major federal investment in clean energy technology.

As Mark Muro of Brookings Institution wrote here, “the latest efforts to gain political consensus in the Senate are continuing to neglect a crucial aspect of cleaning up the country’s energy system—technology innovation.” It was President Obama himself who highlighted an innovation-based approach in his Oval Office speech, noting that “Others wonder why the energy industry only spends a fraction of what the high-tech industry does on research and development – and want to rapidly boost our investments in such research and development.”

Regardless of an economic-wide or utility-only cap, robust federal investment in clean energy technology is a national imperative. In addition to tackling our fossil fuel addiction, it can rapidly drive down the price of low-carbon energy technologies, build new export-oriented and manufacturing-intensive industries, and accelerate the transition to energy independence. The federal government currently invests $30 billion per year in health R&D and $80 billion per year in military R&D. Energy currently receives $3 to $5 billion – less than our national expenditure on potato chips.

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