US Investors to Congress: Pass an Energy Bill With Substance

Here's the latest on the growing backlash against Washington’s joust-fest over the now fated energy bill: Twenty-nine leading US investors who manage $1.4 trillion in assets fired off a letter this morning to Congressional leaders to pass a federal energy policy that has teeth.

They want a bill that creates incentives for the private sector to solve climate change, end our dependence on foreign oil, and gives the US economy a lift in the process.

The investors were led by the group CERES. It's a solid letter from an influential team. Well worth the read.

In a nutshell: The global market for clean energy technology is exploding. Renewable energy investments hit a record $100 billion in 2006. A growing portion of these investments is taking place in China, India and Brazil. Chinese companies were the second largest recipients of clean energy venture capital last year, right behind the US.

It's a concern for US investors. They want the regulatory certainty and federal regulations that will encourage more venture capital investing in clean tech to take place here at home. Specifically, they want three provisions, some of which are on the verge of being dumped from the final bill. All of which are seen as absolutely necessary to make sure that it's at least worth the paper it's written on:

• A strong renewable electricity standard that would boost production of wind, biomass, geothermal and solar energy across the country.
• Strong energy efficiency incentives and standards, which would achieve the easiest, most cost effective reductions in greenhouse gas emissions. The American Council for an Energy Efficient Economy (ACEEE) estimates that standards for lighting alone could reduce global warming pollution by 100 million metric tons in 2030, while saving consumers and businesses billions of dollars.
• Increased fuel economy standards through strong Corporate Average Fuel Economy (CAFE) regulations, which have not been significant raised since the mid-1970s. According to a new Citigroup report, a 35 mile per gallon fleet by 2020 in the United States is not only feasible but could generate profit growth for automakers, including US automakers. (Here's the latest on the battle over CAFE standards.)

At a time when the US economy is faltering, when oil prices are through the roof, when America is having to play catch-up in the race toward profitable climate change solutions, this kind of steadfast insistence against politics-as-usual -- in favor of economic common sense -- is so desperately needed. Especialy when it's from an impeccably credentialed outfit.

Let’s hope it's not too late.

• ‹ previous
• up
• next ›