Green Wombat

A coalition of major industrial corporations and environmental groups today released a proposal for immediate and far-reaching Congressional action to stem global warming that, if adopted, would radically remake the United State’s energy system, creating huge new opportunities for green tech companies and investors. The policy recommendations from the United States Climate Action Partnership comes as the new Democratically controlled Congress considers several global warming bills. The coalition includes aluminum maker Alcoa (AA), oil company BP (BP), Caterpillar (CAT)
DuPont (DD) and General Electric (GE) and utilities  Duke Energy (DUK),
FPL (FPL), PG&E Corp. (PCG) and PNM Resources (PNM) along with
green groups Environmental Defense, the Natural Resources Defense
Council, the Pew Center on Global Climate Change and World Resources
Institute. "Failure is not an option," the CEOs state in their policy proposal. "The way we produce and use energy must fundamentally change, both nationally and globally."

The coalition calls for a mandatory climate action program that would set greenhouse gas emission limits on major sectors of the economy, establish a carbon trading market and signifcant investment in renewable energy technologies. The climate action group said the government should dedicate permanent
funding for renewable energy research and provide tax credits and loan
guarantees to stimulate investment in alternative energy technology.

"There are a number of technologies that are currently available that emit little or no GHGs, such as wind, solar, and nuclear power, hybrid vehicles, and numerous energy efficiency technologies," the coalition said in its policy recommendations. "Rapid advancement and deployment of new, breakthrough technologies are also core elements of any climate change solution. Thus, an effective climate change program must include policies to promote significant research, development and deployment of hyper-efficient end use technologies; low-or zero-GHG emitting technologies; and cost-effective carbon capture and storage, which will be particularly important in the deployment of advanced coal technologies."

ThinkEquity alternative energy analyst David Edwards told Green Wombat that the US-CAP agenda is a boost for green tech. "It’s actually quite momentous to have large corporations, especially the large corporations listed, to step up and ask for broad-reaching and aggressive federal legislation," he said. "It clearly provides good R&D support for the industry, which could help quicken the pace of innovation and cost reduction."

The Climate Action Partnership lays out an ambitious program that will not sit well with other industrial companies, particular those in the coal and oil business: A national inventory and greenhouse gas limit should be established by the end of 2008; greenhouse gas emissions should not increase in the next five years; and within a decade should fall so they are between 90 percent and 100 percent of current levels. Within 15 years, emissions levels should be between 70 percent and 90 percent of
today’s levels. By 2050, emissions should be decline between 60 percent and 80 percent.

Companies that have already acted to reduce their greenhouse gas
emissions should receive credit when a carbon trading market is
established, according to the group.

The government should discourage the construction of new coal-fired power plants unless carbon dioxide can be easily captured and stored, the CEOs said. Furthermore, the government should promote low-carbon transportation fuel – as California is doing – as well as hybrid cars and other low-emission vehicles by limiting greenhouse gases from cars and trucks or raising fuel economy standards.

The nation’s utilities should be rewarded for promoting energy efficiency and incentives provided for energy efficient technologies such as smart power grids and distributed energy from solar, wind and other renewable sources.

In a letter sent today to President Bush, the coalition wrote, "These are complicated problems. There must be a reasoned and serious debate about the solutions. But debate cannot substitute for action."