Feeds:
Posts
Comments

Posts Tagged ‘Center for American Progress’

PODESTA, GORDON, HENDRICKS & GOLDSTEIN, Center for American Progress, September 21, 2009

ctr-4-american-progressWith unemployment at 9.5%, and oil and energy price volatility driving businesses into the ground, we cannot afford to wait any longer. It is time for a legislative debate over a comprehensive clean energy investment plan. We need far more than cap and trade alone.

The United States is having the wrong public debate about global warming. We are asking important questions about pollution caps and timetables, carbon markets and allocations, but we have lost sight of our principal objective: building a robust and prosperous clean energy economy. This is a fundamentally affirmative agenda, rather than a restrictive one. Moving beyond pollution from fossil fuels will involve exciting work, new opportunities, new products and innovation, and stronger communities. Our current national discussion about constraints, limits, and the costs of transition misses the real excitement in this proposition. It is as if, on the cusp of an Internet and telecommunications revolution, debate centered only on the cost of fiber optic cable. We are missing the big picture here.

Let’s be clear: Solving global warming means investment. Retooling the energy systems that fuel our economy will involve rebuilding our nation’s infrastructure. We will create millions of middle-class jobs along the way, revitalize our manufacturing sector, increase American competitiveness, reduce our dependence on oil, and boost technological innovation. These investments in the foundation of our economy can also provide an opportunity for more broadly shared prosperity through better training, stronger local economies, and new career ladders into the middle class. Reducing greenhouse gas pollution is critical to solving global warming, but it is only one part of the work ahead. Building a robust economy that grows more vibrant as we move beyond the Carbon Age is the greater and more inspiring challenge.

Reducing greenhouse gas emissions to avert dangerous global warming is a moral challenge, but it is also an economic, national security, social, and environmental imperative. The “cap and trade” provisions, which will set limits on pollution and create a market for emissions reductions that will ultimately drive down the cost of renewable energy and fuel, represent a very important first step and a major component in the mix of policies that will help build the coming low-carbon economy. But limiting emissions and establishing a price on pollution is not the goal in itself, and we will fall short if that is all we set out to do. Rather, cap and trade is one key step to reach the broader goal of catalyzing the transformation to an efficient and sustainable low-carbon economy. With unemployment at 9.5%, and oil and energy price volatility driving businesses into the ground, we cannot afford to wait any longer. It is time for a legislative debate over a comprehensive clean energy investment plan. We need far more than cap and trade alone.

This is not just an exercise in rhetoric. Articulating and elevating a comprehensive plan to invest in clean energy systems and more efficient energy use will affect policy development and the politics surrounding legislation now moving through the Senate, as well as international negotiations underway around the globe. The current debate, which splits the issue into the two buckets of “cap and trade” and “complementary policies,” has missed the comprehensive nature of the challenge and its solutions. It also emphasizes the challenge of pollution control instead of organizing policy for increased development, market growth, reinvestment in infrastructure, and job creation through the transition to a more prosperous, clean energy economy.

This paper lays out the framework for just such an investment-driven energy policy, the pieces of which work together to level the playing field for clean energy and drive a transformation of the economy. Importantly, many elements of this positive clean-energy investment framework are already codified within existing legislation such as the American Clean Energy and Security Act, passed by House of Representatives earlier this year. But with all the attention given to limiting carbon, too little attention has been placed on what will replace it. These critical pieces of America’s clean energy strategy should be elevated in the policy agenda and political debate as we move forward into the Senate, and used to help move legislation forward that advances a proactive investment and economic revitalization strategy for the nation.

Read the full report here.

Advertisements

Read Full Post »

MendoCoastCurrent, John Podesta, September 9, 2008

ctr-4-american-progressOn September 9, 2008, the Center for American Progress, a Washington think tank headed by John Podesta, former Chief of Staff to U.S. President Bill Clinton, published a report by entitled “Green Recovery: A New Program to Create Good Jobs and Start Building a Low-Carbon Economy.” This report may serve as a road map for the new President, Barack Obama. Podesta now heads President-Elect Obama’s transition team. As such, it may be instructive to review its contents as a guide to the Obama Administration’s energy policy.

The signs are clear: Our economy is in trouble. Falling home prices, foreclosures, bank failures, a weaker dollar, rising prices for gas, food, and steel, and layoffs in banking, construction, and manufacturing sectors are all indicators of serious economic strain-following a long period in which the middle class went nowhere even while the economy grew as a whole. What’s more, evidence suggests the current downturn will continue for at least another year.

At the same time, we face a growing climate crisis that will require us to rapidly invest in new energy infrastructure, cleaner sources of power, and more efficient use of electricity and fuels in order to cut global warming pollution. There is much work to be done in building smart solutions at a scale and speed that is bold enough to meet this gathering challenge.

It is time for a new vision for the economic revitalization of the nation and a restoration of American leadership in the world. We must seize this precious opportunity to mobilize the country and the international community toward a brighter, more prosperous future. At the heart of this opportunity is clean energy, remaking the vast energy systems that power the nation and the world. We must fundamentally change the way we produce and consume energy and dramatically reduce our dependence on oil. The economic opportunities provided by such a transformation are vast, not to mention the national security benefits of reducing oil dependence and the pressing need to fight global warming. The time for action is now.

Today, the Center for American Progress releases a new report by Dr. Robert Pollin and University of Massachusetts Political Economy Research Institute economists. This report demonstrates how a new Green Recovery program that spends $100 billion over two years would create 2 million new jobs, with a significant proportion in the struggling construction and manufacturing sectors. It is clear from this research that a strategy to invest in the greening of our economy will create more jobs, and better jobs, compared to continuing to pursue a path of inaction marked by rising dependence on energy imports alongside billowing pollution.

The $100 billion fiscal expansion that we examined in this study provides the infrastructure to jumpstart a comprehensive clean energy transformation for our nation, such as the strategy described in CAP’s 2007 report, “Capturing the Energy Opportunity: Creating a Low-Carbon Economy.” This paper shows the impact of a swift initial investment in climate solutions that would direct funding toward six energy efficiency and renewable energy strategies:

  • Retrofitting buildings to increase energy efficiency
  • Expanding mass transit and freight rail
  • Constructing “smart” electrical grid transmission systems
  • Wind power
  • Solar power
  • Advanced biofuels

This green recovery and infrastructure investment program would:

  • Create 2 million new jobs nationwide over two years
  • Create nearly four times more jobs than spending the same amount of money within the oil industry and 300,000 more jobs than a similar amount of spending directed toward household consumption.
  • Create roughly triple the number of good jobs-paying at least $16 dollars an hour-as spending the same amount of money within the oil industry.
  • Reduce the unemployment rate to 4.4% from 5.7%(calculated within the framework of U.S. labor market conditions in July 2008).
  • Bolster employment especially in construction and manufacturing. Construction employment has fallen from 8 million to 7.2 million over the past two years due to the housing bubble collapse. The Green Recovery program can, at the least, bring back these lost 800,000 construction jobs.
  • Provide opportunities to rebuild career ladders through training and workforce development that if properly implemented can provide pathways out of poverty to those who need jobs most. (Because green investment not only creates more good jobs with higher wages, but more jobs overall, distributed broadly across the economy, this program can bring more people into good jobs over time.)
  • Help lower oil prices. Moderating domestic energy demand will have greater price effects than modest new domestic supply increases.
  • Begin the reconstruction of local communities and public infrastructure all across America, setting us on a course for a long-term transition to a low-carbon economy that increases our energy independence and helps fight global warming. Currently, about 22% of total household expenditures go to imports. With a green infrastructure investment program, only about 9% of purchases flow to imports since so much of the investment is rooted in communities and the built environment, keeping more of the resources within the domestic economy.

Our report looked at investments that were funded through an increase in near-term government spending, which could ultimately be repaid by future carbon cap-and-trade revenues. These sources of new investment included the following funding mechanisms:

  • $50 billion for tax credits. This would assist private businesses and homeowners to finance both commercial and residential building retrofits, as well as investments in renewable energy systems.
  • $46 billion in direct government spending. This would support public building retrofits, the expansion of mass transit, freight rail, smart electrical grid systems, and new investments in renewable energy
  • $4 billion for federal loan guarantees. This would underwrite private credit that would be extended to finance building retrofits and investments in renewable energy.

A comprehensive clean energy agenda is essential to the future of our country. The green recovery and infrastructure investment described here is doable in the early days of a new administration. It would enable our country to take significant steps, through energy efficiency and renewable energy development, to move toward a low-carbon economy, while Congress and the next administration move toward the swiftest possible implementation of an economy-wide greenhouse gas cap-and-trade program.

The next president and lawmakers can pledge to repay the Treasury the cost of the green infrastructure recovery program from cap-and-trade auction revenue. The plan increases public spending in the short term when a near-recession economy needs greater impetus to growth; but it remains consistent with fiscally responsible long-term plan to reduce the debt as a share of GDP, after the economy recovers.

CAP looks forward to continuing to work on the shared mission to reap all of the benefits provided by the transition to a low-carbon economy and discussing this work in greater detail.

Read Full Post »