The Green Economy: The Race Is On
By Mark Fulton | April 26, 2010
The key to success is to attract large-scale private investment into climate change industries. The essential characteristics of the most successful policy regimes in countries such as Germany and China are Transparency, Longevity, and Certainty. In short, investors need a little TLC at the "right price" (See DBCCA's "Paying for Renewable Energy: TLC at the Right Price—Achieving Scale through Efficient Policy Design," [PDF] December 2009). The United States has so far failed to implement TLC on a national scale (although some states are taking action). As a result, the United States is falling behind in the race to develop new technologies, industries, and jobs as the global economy moves towards a low-carbon future, although there are still ongoing efforts in the U.S. Congress.
In this research note, we focus on three topics:
(1) There is growing business support for tackling climate change and deploying clean technologies, products and services;
(2) Government policy regimes around the world have identified climate change and clean technology as a megatrend as well, and have begun accelerating policies to address this trend (See DBCCA's "Global Climate Change Policy Tracker: An Investor's Assessment," October 2009);
(3) However, this policy action differs at the individual country level, showing that the United States is falling behind. This can be seen through renewable energy capacity growth and capital investment relative to the economy.
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