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On July 20 GMF’s Climate & Energy Program hosted a lunch event at the Phoenix Park Hotel near Capitol Hill entitled Can we enhance energy security and unleash clean energy innovation without impeding economic growth? Featured speakers included Katherina Reiche, parliamentary state secretary to the German Ministry of the Environment, Nature Conservation and Nuclear Saftey, C. Boyden Gray, former special envoy for Eurasian energy and for European affairs, and James Connaughton, executive vice president for corporate affairs, public, and environmental policy at Constellation Energy and former chairman of the White House Council on Environmental Quality. The event coincided with the Clean Energy Ministerial Meeting hosted by U.S. Secretary of Energy Steven Chu, and provided an opportunity for the high-level panelists to share their views on the policy options currently under consideration by Congress at a critical time in the U.S. energy and climate debate. Participants included senior congressional staff, U.S. administration representatives, and business and NGO leaders.   GMF President Craig Kennedy gave the opening remarks and Cathleen Kelly, director of GMF’s Climate & Energy Program, moderated the discussion.

GMF podcasts of the event's panel discussion and Q&A are available here.   State Secretary Katherina Reiche noted that Germany and the United States are faced with similar challenges, including the need to organize and design a more efficient energy strategy that decreases dependence on foreign energy imports, is environmentally friendly, and creates jobs while mitigating climate change. The clean energy sector has been the only sector in Germany that has seen job growth during the current economic crisis. State Secretary Reiche attributed this success to clear carbon price signals and policy incentives for renewable energy. Germany has a policy framework in place that has put the country on track to reducing carbon emissions 40 percent from 1990 levels by 2040.   State Secretary Reiche emphasized the importance of strong transatlantic cooperation to tackle climate change and mentioned Germany’s efforts to strengthen policy coordination with the United States through its Transatlantic Climate Bridge Initiative. She urged the transatlantic partners to lead by example and signal to other countries like China and India that low-carbon economic growth is possible    Ambassador C. Boyden Gray pointed out that energy security and dependency problems in the United States revolve around oil, not around natural gas as they do in Europe. Ambassador Gray mentioned that none of the legislative proposals currently on the table do enough to increase energy security by reducing U.S. reliance on oil. He noted that reducing oil consumption is also important to address climate change, as oil produces far more CO2 than coal does. Since the majority of foreign oil imports are used in the transportation sector, Ambassador Gray proposed auto emissions standards as the best means to achieve energy security.  He asserted that placing carbon caps on utilities only is not enough, particularly if the goal is to reduce oil imports. He mentioned important opportunities for job creation and economic growth in shale gas, biofuels, and electric cars.    Mr. James Connaughton offered a vision for the future where 100 percent U.S.-made electric cars charged overnight for 70¢ per gallon and cut U.S. carbon emissions from U.S. automobiles by 90 percent. He asserted that we are closer to realizing this future than we may realize. He said that achieving emissions cuts greater than 80 percent is technologically feasible and commercially reasonable over time, however, the right investments will need to be made over the next ten years so that customers don’t experience price shocks. No new technologies would be needed to reach this future -- existing technologies would just need to be deployed. Yet, we do need the political will.    Mr. Connaughton suggested that we need a suite of policies to achieve this future, including mandates, incentives, and technology research and development programs. The international community must also recognize that things can change at an extremely rapid pace. For example, a few years ago China’s emissions were not predicted to exceed those of the United States until 2030—yet they soared past U.S. levels last year. There is a need for awareness that a variety of approaches will deliver a clean energy future. International dialog is too focused on one solution.    Mr. Connaughton asserted that Cap and Trade was invented by Republicans and that it can and should be done. Yet, he acknowledged that if Cap and Trade is done wrong it may be negatively perceived as a tax.  Participants were interested in learning how Germany was able to overcome initial opposition to energy and climate policies and embrace a 40 percent carbon emission cut and strong policies to support renewable energy. State Secretary Reiche responded that Germany recognized the potential for the creation of new markets, the opportunity to gain a competitive edge in these markets, and the economic and environmental benefits of relying more heavily on renewable energy. The European Union has set ambitious energy and climate goals because they wanted to demonstrate leadership in the international negotiations. Furthermore, she said that it is also a question of responsibility, and that bigger economies need to show that economic growth is possible without consuming increasing amounts of energy. 

Another topic of interest for the participants was the auto industry’s role in cutting carbon emissions. Mr. Connaughton noted that the auto industry historically demonstrates how quickly things can change when you find the magic moment. President Bush pushed for tougher fuel economy standards which resulted in a bi-partisan bill, and within a year produced a mandate that passed congress. Fuel economy standards are a form of a Cap and Trade system, as is renewable fuel standards. State Secretary Reiche added that the German auto industry has been an important producer of new technology and efficiency improvements.


GMF podcasts of the event's panel discussion and Q&A are available here.