Government ministers and corporate executives from more than 20 countries are gathering in Washington, D.C., this week to accelerate the deployment of clean-energy technologies to mitigate climate change.
The big question heading into the Clean Energy Ministerial is whether the United States, Germany and other major economies -- which collectively invested almost $200 billion in "green" economic stimulus projects since late 2008 -- have the stomach for more spending in the face of rising debt.
"How do we expand the clean-energy revolution in a time of long-term fiscal constraints? Well, R&D is a very low-cost, excellent investment," Energy Secretary Steven Chu told the gathering this morning. Executives from General Electric Co., Wal-Mart Stores Inc., E.I. DuPont de Nemours & Co. and other major companies are also attending the two-day ministerial.
The meeting comes a year after Italy hosted the Major Economies Forum on Energy and Climate. The United States, China, India, Russia and a dozen other nations in attendance proposed doubling investments in clean technologies by 2015 but stopped short of making a firm commitment.
Clean Energy Ministerial participants -- whose countries account for 70 percent of global greenhouse gas emissions and 80 percent of global gross domestic product -- will meet behind closed doors today and announce renewable energy and energy efficiency partnerships tomorrow.
"Governments will come forward with proposals and see whether other governments want to join," DOE Assistant Secretary David Sandalow explained in an interview. "The premise here is governments can accomplish more working together than alone."
Sandalow declined to say whether the ministers will commit additional funding for clean energy, but he said they will focus on ways to leverage private-sector investments in biofuels, low-emissions coal, marine turbines, photovoltaics and other technologies.
In a report prepared for last summer's forum, the International Energy Agency estimated that the total annual research, development and deployment funding need for clean technologies ranges from $37 billion to $74 billion. Public spending for RD&D -- which should constitute about half of the total funding -- needs to increase three-to-six fold from the current funding level of $5 billion, IEA estimated.
Cumulatively, the world must invest $46 trillion in cleantech by 2050 to reduce global greenhouse gas emissions to 14 gigatons -- a level endorsed by the Group of Eight nations, IEA Executive Director Nobuo Tanaka told ministers today. The cost of inaction goes up $500 billion annually.
"We still have formidable challenges before us," Tanaka said, "but every day we wait the challenges become much harder."
Strategies for spurring investments
Public policies that would help spur private investment in clean energy include putting a price on carbon dioxide emissions, establishing clear rules for connecting renewable energy to the grid, creating efficiency labels for appliances and establishing production-based incentives for emerging clean-energy technologies, noted a report (pdf) produced after last summer's forum.
Chu echoed those recommendations today and offered a few of his own: deploying energy-efficient cook stoves in rural villages; painting urban rooftops white to reflect solar heat; and equipping commercial and residential buildings with real-time energy sensors and controls.
"The goal here is not to discuss what one might agree upon," Chu underscored. "Our goal is to take concrete actions."
Corporate executives meeting with government ministers this week will call for a range of public incentives, including tax credits and feed-in tariffs for manufacturers and consumers of renewable energy technologies, explained Tom Connelly, DuPont's chief innovation officer. Executives will also urge policymakers to coordinate efforts to reduce emissions of carbon dioxide and other heat-trapping gases.
"We are in favor of steps that attribute a cost to carbon emissions," Connelly added. "A tax or a cap on carbon emissions is one of the positive steps that can be used to accelerate a clean-energy future, so definitely these ideas will be discussed."
Attending this week's ministerial are delegations from Australia, Belgium, Brazil, Canada, China, Denmark, the European Commission, Finland, France, Germany, India, Italy, Japan, Mexico, Norway, Russia, South Africa, South Korea, Spain, Sweden, the United Arab Emirates, the United Kingdom and the United States.
