U.S. business calls for more support to renewables

WASHINGTON, DC, US, February 22, 2006 (Refocus Weekly)

A two-year study by the energy and manufacturing sectors in the United States has recommended that renewable energies significantly “ramp up” its role in energy supply.

The Pew Center on Global Climate Change has released its first comprehensive plan to reduce greenhouse gas emissions in the U.S., which concludes that there is no single technology fix, no single policy instrument and no single sector that can solve the problem of climate change on its own. A combination of technology investment and market development will provide for the most cost-effective reductions in GHG and create a “thriving market for GHG-reducing technologies.”


There should be a significant “ramp up” for renewables in green power and green fuels, including an extension and expansion of the production tax credit, a uniform system for tracking renewable energy credits, and increased emphasis on biomass, concludes the report, ‘Agenda for Climate Action.’ A significant expansion of renewable capacity “will likely require a mix of policies to encourage generation and production and to reduce barriers for distributed sources.”

“Congress should enact legislation to grant a longer-term extension of the federal production tax credit currently available to some GHG-emission-free generation, extend the same credit to other zero-GHG electricity sources, and create incentives for uniform grid interconnection standards at the state level,” it continues. “A uniform system should also be established to track renewable energy credits in a consistent way across the country and to facilitate trading between programs.”

“While an economy-wide GHG program would be preferable, sector-specific programs like a national Renewable Portfolio Standard or Renewable Fuels Standard may evolve first,” it explains. “In designing such systems, Congress should recognize the regional differences in renewable resources and existing state-level policy actions.”

Federal policies and research funding should support the use of ethanol and biodiesel now, and aim for more advanced uses of biomass in future. “Biomass can be used for very low-GHG energy in a large number of ways” but to be viable on a larger scale and to become cost-competitive with fossil fuels, a “significant, sustained R&D effort will be required both on conversion technologies and on energy crop yields and characteristics.”

“While actions are needed across all sectors, some steps will have a more significant, far-reaching impact on emissions than others and must be undertaken as soon as possible,” it recommends. “A program to cap emissions from large sources and allow for emissions trading will send a signal to curb releases of GHG while promoting a market for new technologies.”

Transportation is responsible for one-third of GHG emissions in the U.S., and the addresses that sector through tradable emissions standards for vehicles. Energy is at the core of the climate change problem and the report makes several recommendations for increased efficiency in buildings and products, as well as in electricity generation and distribution.

“In recognition of the key role that coal plays in U.S. energy supply, the report calls for the capture and sequestration of carbon that results from burning coal,” while nuclear provides a “substantial amount of non-emitting electricity ... and is important to keep in the generation mix.” The report recommends support for advanced generation of nuclear power, while noting that issues such as safety and waste disposal must be addressed.

Most of the recommendations focus on mitigation efforts but the report acknowledges that some impacts are inevitable and are already being seen and, as a result, it proposes development of a national adaptation strategy to plan for a climate-changing world. It also says climate change cannot be addressed without engagement of the broader international community, and recommends that the U.S. participate in international negotiations aimed at curbing global GHG emissions by all major emitting countries.

“Some believe the answer to addressing climate change lies in technology incentives; other say limiting emissions is the only answer,” says Eileen Claussen of the Pew Center. “We need both.”

U.S. emissions of CO2 have increased 18% since 1990, and the Department of Energy projects an additional increase of 37% by 2030.

Some of the officials at the launch of the report were from Shell International, PG&E, BP, Cinergy, Holcim and Whirlpool. The The Pew Center was established in 1998 by one of the largest philanthropies in the U.S. to provide a voice in environmental issues. It is an independent non-partisan organization “dedicated to providing credible information, straight answers and innovative solutions in the effort to address global climate change.”


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