A Strong Economy Is a Green Economy

Right now, everyone in Congress is discussing stimulus packages to turn around the economy. The question is, what do we want to stimulate? I think the best investment we can make is in a clean, green energy future that will help stave off the worst effects of global warming.

Business executives I've met with are beginning to see significant economic opportunities in tackling global warming. Equity fund managers call on NRDC experts to discuss investments in clean energy solutions, and we have talked to Fortune 500 executives who want to advocate national policies that will bring cleaner fuels to market. In the next 20 years, $3 trillion will be invested in power plants, refineries, and other energy infrastructure in the United States; more and more utilities, manufacturers, and investment firms want to redirect that money away from dirty, outdated equipment and into the latest clean tech. Put $3 trillion into global warming solutions, and America could become the worlds sustainable energy leader.

Of course, you'd expect me to say that. But in December 2007, a group of financial analysts at McKinsey & Company released a report that examined the cost and market potential of 250 technologies for reducing global warming; it concluded that we can reduce greenhouse gases at little or no net cost to the economy. In July 2007, the Environmental Protection Agency did an economic analysis of the Lieberman-Warner Climate Security Act. The study's bottom line: reducing global warming pollution will have an imperceptible effect on economic output overall. This is remarkable news. We can stave off the biggest environmental and humanitarian crisis without disrupting economic growth.

These studies don't even account for the benefits of cleaner air, lower childhood asthma rates, and reduced dependence on repressive oil regimes. Clean energy solutions will pay significant dividends to consumers and businesses alike. But market barriers stand in the way. Why would investors--who hate uncertainty--put money into capturing carbon emissions from coal plants when America hasn't enacted a limit or price on carbon pollution? A federal cap on carbon emissions, along with smart incentives, can move emerging technologies out of the lab and into the marketplace. The longer we wait, the more costly it will be to bring about climate solutions. The time to start a clean energy revolution is now. The faster we get started, the sooner we can begin creating jobs in America and protect our natural resources from destructive energy development.