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."

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Pressure on President Bush to take action on global warming grew Friday night as Wal-Mart (WMT) threw its support to a coalition of major U.S. corporations and environmental groups pressing for the quick implementation of national policies to reduce greenhouse gas emissions and establish a carbon trading market. The group – called the U.S. Climate Action Partnership – will unveil its climate change initiative on Monday in Washington, D.C. The coalition includes the CEOs of such old-line industrial behemoths as Alcoa (AA), Caterpillar (CAT) DuPont (DD) and General Electric (GE) as well as financial services firm Lehman Brothers (LEH). Other companies in the coalition are utilities PG&E Corp. (PCG), FPL (FPL) and Duke Energy (DUK). Joining them are the Natural Resources Defense Council, Environmental Defense, World Resources Institute and the Pew Center on Global Climate Change. Said Linda Dillman, Wal-Mart’s executive vice president for sustainability, in a statement: "We endorse the group’s call for strong national policies and market-based programs for greenhouse gas reductions."

The CEO of the parent company of one of the nation’s largest utilities today urged the federal government to establish national limits on greenhouse gas emissions and require targeted reductions to combat global warming. In a speech at the National Press Club, PG&E Corp. (PCG) Chief Executive Peter Darbee also called for a national carbon trading market, an extension of tax credits for renewable energy investment, national energy efficiency
standards and the promotion of plug-in hybrids cars. "If you look at U.S. greenhouse gas emissions compared with other nations, the amount is vastly disproportionate to our
population.  Our emissions are higher than those of China and India combined, where the population is more than 2.5 billion people," Darbee said, according to his prepared remarks, in accepting an award from the Natural Resources Defense Council. "If you look at our wealth and prosperity relative to other nations, it’s clear that we can afford to make a difference. And, if you look at our tremendous capacity for innovation, it’s clear that we have the human capital to develop the solutions. By signaling to the market that we’re serious about progress on clean energy, we can stimulate investment and engage our best and brightest in this effort."

San Francisco-based PG&E is perhaps the nation’s greenest utility and Darbee also appeared on Capitol Hill today to throw his support behind Senate legislation that would cut greenhouse gas emissions from his own industry.  “As the single largest source of
emissions in the U.S., the utility sector must play a key role in meeting our national
emissions reductions goals," he said in a statement. "This bill will significantly reduce emissions from the utility sector and it will do so by leveraging the innovation and
efficiency of the market.” Darbee’s speech comes as a raft of global warming bills are being introduced into the new Democrat-controlled Congress. At the Press Club, he urged the government to
provide renewable energy investors with some certainty by extending tax credits for
more than one or two years at a time and to fund new research into alternative energy. "I’m particularly intrigued by solar thermal technology. PG&E is also exploring the possibility of tidal and wave power off the coast of San Francisco," said Darbee. "Our economy will lead the clean energy revolution, just as we’ve done in hi-tech and biotech."

Darbee’s call for national global warming laws is sure to further divide the utility industry. Unlike utitilies in coal-dependent regions, PG&E relies on cleaner natural gas plants to provide most of the electricity it sells. And because California regulates the utility’s revenues, PG&E isn’t dependent on increasing consumers’ power usage to boost profits.