We need action on climate change

Kristen Sheeran and Mindy Lubber

Nothing should have quieted critics of the proposed climate and energy bill in Congress more than the recent news that Ford Motor Co. is spending half a billion dollars to convert a Michigan factory that made SUVs to one that will produce electric cars far into the future.

MCT/Tim Goheen

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The announcement demonstrates how moving to a new, low-carbon society will be good for business, create more jobs, spur the kind of innovation that made American industry great, and — if we do it right — put this country back in world leadership for clean technology and commerce.

Congress is now at a critical juncture in its consideration of landmark legislation proposed by Reps. Henry Wax-man, D-Calif., and Edward Markey, D-Mass. The bill would accelerate our nation’s essential shift to greater energy efficiency and new renewable energy sources, and start phasing out our dependence on foreign oil and dirty coal.

Congress has wavered at this juncture before. It has succumbed to the false arguments that this transition would cost too much and burden business. Our present economic morass and the growing consequences of global warming should convince us that decisions made for short-term profit eventually are ruinous. Instead, we need foresight and a willingness to prepare for the future.

American business has the ingenuity and drive to lead the way. Many members of Business for Innovative Climate and Energy Policy (BICEP), a coalition of national and global companies including Nike, Starbucks, Symantec, eBay, Sun Microsystems and Levi Strauss, already have recognized the opportunities at hand. Their pollution-reducing initiatives confirm what economic research has long demonstrated — smart policy can prevent climate change and improve economic performance. RealClimateEconomics.org demonstrates the weight of economic analyses that support this conclusion.

These companies now deal with a hodge-podge of state and international laws. Innovative companies that embrace clean technologies need a level playing field to compete. And they need to imbed their strategies in a broad national agenda to remake our economy for a livable 21st century.

We need to put our labor force to work by accelerating that makeover. We need to stop sending $2 billion a day to foreign oil producers, and we need to slow the assault on our climate by embracing energy efficiency and proven alternatives to fossil fuels.

We can send the right signal by putting a price on carbon dioxide emissions — polluting shouldn’t be free. With the right regulations and incentives we can reward industries that embrace a cleaner environment. We can stop subsidizing dirtier fuels and start promoting new technologies and energy savings.

The Waxman/Markey bill has many of these goals in its sights. It promotes clean energy and energy efficiency with a combination of incentives and gradual but mandatory targets. In the transition, it would create millions of good-paying jobs. It finances research and will put the dream of “clean coal” to the test. It will strengthen fuel standards and bring on the age of electric cars, revamp our aging power grid, and ramp down our greenhouse gas emissions by 15 to 20 percent in the next decade.

The bill should not be watered down with giveaways. Already, special interests are pushing for free “allowances” for carbon emissions, a risky course that in Europe resulted in unearned windfalls and few pollution reductions. The Obama administration is right to push for carbon emission permits to be auctioned; the proceeds can finance programs to cut energy waste and reduce costs for consumers.

Legislators also must be careful not to set off a trade war by trying to shield American industries from international competitors that do not yet count global pollution costs. American leadership will set the stage for other countries to adopt climate solutions. The world has been waiting for the U.S. — the world’s largest carbon producer — to act.

Other countries are out ahead of us on the curve. Germany makes nearly half the world’s solar panels, and its second largest export is wind turbines. Automakers here and elsewhere are looking to Korea and China for the next generation of hybrid batteries. If we fail to act now, we risk falling further behind in the new green age.

We can no longer listen to those who grasp the buggy whip to flail against change. In 1995, opponents of bills aimed at eliminating ozone-depleting substances cried that industries would collapse under the weight of $135 billion in costs. The actual costs were barely one percent of what critics feared, the health benefits were enormous, and chemical companies made millions producing less dangerous chemicals. And, we halted the depletion of our ozone layer.

The climate and energy act before Congress can have a similar outcome, one that is good for the environment, the economy, households and businesses. Congress should not lose its focus on this historic opportunity to do the right thing.

Kristen Sheeran is executive director of Economics for Equity and the Environment Network, an Oregon-based network of economists whose research supports fair and efficient environmental policy solutions. Mindy Lubber is president of Ceres, a leading coalition of investors and environmentalists working with companies to address sustainability challenges. She also directs the business coalition BICEP.