The Clean Energy Choice—To Lead or Lag

5/26/10

This month a group of 50 clean energy CEOs, investors and executives from New England traveled to Washington D.C. to deliver a common message to our leaders in the nation’s capitol: comprehensive energy and climate legislation is critical for building the clean energy economy here in New England and across the United States. The Kerry-Lieberman ‘American Power Act’ has the potential to kick-start our shared vision for the nation’s future. It draws upon many elements of the House’s Waxman-Markey legislation and Senate’s Cantwell-Collins proposal to deliver the market signals that will accelerate private sector investment, speed the transition to a clean, sustainable energy future, and create millions of quality jobs in the U.S. And, as we watch the situation unfold in the Gulf of Mexico and are reminded of our dependency on oil, it couldn’t have come at a more critical juncture.

New England and its business leaders have the ability to effect change. The clean energy sector already includes more than 2,000 Massachusetts companies and 26,000 jobs. It is the fastest growing industry in the region. Clean energy may be the largest opportunity we have ever had to grow new companies, create new jobs and build thriving regional and national economies. However, the clean energy industry in New England is different from its predecessors—textiles, computer hardware and software, Internet business – in scale, timeframes and the amount of investment required.

By now, many of us have heard the numbers. Energy is a $6 trillion global industry that will grow by tens of trillions of dollars during the next 30 years. But clean energy involves capital-intensive manufacturing or projects that produce commodities such as fuel, electricity or clean materials. This combination requires an alignment of policy and public-sector investment with private capital and entrepreneurial activity. The market dictates that company growth and jobs will disproportionally be placed in regions with clear, long-term policies, pricing signals, and a willingness to adopt early.

New England already has some of ingredients to drive private investment. Regional policies such as RGGI (the Regional Greenhouse Gas Initiative), state Renewable Portfolio Standards, advanced building codes, utility energy efficiency programs, and other initiatives have contributed to the growth of the sector. Massachusetts clean energy companies have brought in $1.1 billion in venture capital and private investment deals from 2007-2009, trailing only California, according to Bloomberg New Energy Finance data and a recent Clean Edge report.

Despite our progress, a recent Pew Charitable Trusts study concluded that in 2009, China invested twice as much as the U.S. in clean energy—$34.6 billion versus $18.6 billion. In addition, in relative terms, the UK invested three times more than … Next Page »

Peter Rothstein is President of the New England Clean Energy Council. Follow @

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  • http://stopthegrid.org Elaine Mann

    I am all for clean energy, until it compromises our view shed or makes a new addition to view pollution. I am talking about transmission lines and substations/collector sites. Broadwater County Montana, utility proposed MSTI project, hundreds of miles of 500kV transmission lines, a substation/collector site (50+ acres) with collector lines connecting. Wind farms across Montana with those collector lines leading to proposed collector site. Hundreds of miles of lines terracing across the “new Electric Sky State”. The substation/collector site will have no EIS, no public input, our legislators did this to us by gutting our Montana Codes Annotated. We will have no recourse, especially in such a small community with little financial resources. Our little group has started a concerned citizens group and a website “www.stopthegrid.org”. There is little more we can do, but, write letters and hope for help from folks we do not know.

    Thank you for this opportunity to voice some opinion.

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  • http://www.buildbabybuild.com Ken Smith

    Boston-based green blog Build Baby Build, dedicated to promoting a nation of energy locavores through local renewable energy development to donate 50% of merchandise profits to New Orleans Charity. Please visit http://www.buildbabybuild.com for details.

  • Ray DeMeo

    Peter,

    A meaningful post.
    It is disheartening to see the announcement this week that Senator Lindsey Graham will now reverse on his support for the energy bill. On Your closing point about private sector investment is well made. Without legislation that can give a greater measure of market stability, private sector insecurity around making investments in cleantech will remain.