Obama’s speech boost for clean energy policies
February 1, 2012
Written By Paul Budde
It was very interesting to hear President Obama’s energy proposals in his State of the Union address.
He expressed regret, but gone is his plan for an ETS (carbon tax). The focus has now shifted to energy efficiency. There is simply not sufficient political will in the USA to develop a more primary policy.
The goals of climate change, sustainability and energy efficiency policies can certainly be driven through an ETS or carbon tax, but in political terms easier solutions can be found through energy savings. Also, it is becoming increasingly clear that new technologies are required to support the policies that would surround a carbon tax; and, in particular, new infrastructure will be necessary, regardless of whether we are looking at installing solar panel, promoting electric vehicles or smart grids.
However, climate change, sustainability and energy efficiency can be pursued without an ETS by investing in new technologies for the purpose. Overall a 30%-40% saving can be achieved by taking this course.
As the President indicated, energy-saving policies will lead to the green economy, with high quality new jobs, new companies – and indeed new industries – all creating economic opportunities at home and overseas (export).
President Obama’s proposals are also important for other countries, where there is still no cohesive policy in place between all the various energy and climate change initiatives. The central emphasis here needs to switch to energy efficiency, along the same lines as the American proposal.
Some of the other elements of Obama’s proposal that are relevant to other countries:
• He proposes to create incentives and eliminate regulatory barriers to use energy more efficiently in manufacturing facilities and businesses.
• Investments in renewable technologies will boost domestic manufacturing and increase homegrown energy.
• He also noted that the main economic competitors of the United States, particularly China and Germany, are investing heavily in the clean energy technologies and jobs of the future. This includes wind and solar power for electricity and advanced batteries for hybrids and electric vehicles.
• He called for 25 major renewable energy projects on public lands. When constructed the projects are expected to create nearly 12,000 construction and operational jobs, and to produce nearly 6,200 megawatts of energy – enough to power 2.2 million American homes.
• Another tool to increase the generation of clean electricity and create jobs is his proposal to ‘pass clean energy tax credits’.
• Helping people earn more while spending less on energy will strengthen the middle class.
It was reassuring that the State of the Union address featured the economic advantages of clean energy. In the past the focus (correctly) was on sustainability, etc. But we do need both and the clean energy agenda will contribute to the achievement of both these goals.
It was also promising to hear that the polls following his address indicated good public support for the President’s energy proposal.
