In his most recent State of the Union address, President Obama introduced the idea of “winning the future” to the American public. ECO welcomes this race, and humbly suggests a focus on climate policies could help him achieve this seemingly paradoxical goal. To win the race, the U.S. will need to actually join it. A recent Pew and Bloomberg New Energy Finance report shows that the U.S. has slipped down to number three in private investment in clean energy development, such as small-scale solar installations, launching Germany into the number two spot. Until 2008, the U.S. had held the top spot, a spot now firmly held by China. Globally, 2010 clean energy finance and investments grew by 30 percent to a record $243 billion.
Why is the U.S. competitive position ‘deteriorating’, ECO wonders?
The report concludes that climate policies matter to investors. Pew’s Clean Energy Program Director attributed the decline in investments in the U.S. to a ‘weak and uncertain’ policy framework. China, Germany and India are rising in investment rankings because they have adopted policies such as renewable energy standards, carbon reduction targets and/or incentives for investment and production.
In the race to win the future, the US seems to be running with its shoes untied.
The report – Who’s Winning the Clean Energy Race? 2010 edition – is the second annual compilation of clean energy investments (which includes renewables and energy efficiency). Last year’s reportmade big waves in the U.S. when it announced that China had taken over the lead.Now the gap has widened and the US is falling even lower down the rankings.
ECO has to wonder when U.S. elected officials will wake up to that fact that the real ‘job killer’ is not carbon regulation. It is the failure to join the rest of the world in the race to the new energy future