Why wait for the Government on Climate Change?
President Obama released the “Clean Power Plan” last year. The plan would regulate emissions on coal fired power plants. Already the Supreme Court has put the plan on hold. Congress cannot even agree on the problem, let alone a solution.
Meanwhile, as the politicians fight, the landscape of clean energy and energy efficiency has been changing drastically. The cost of solar and wind energy is now competitive with new fossil fuel electricity generation. Efficient LED light bulbs have had a price drop of as much as 90% in the past three years. The price of battery storage has been falling 14% a year since 2007. Learning and economies of scale will continue this downward trend in prices for clean energy while conventional electricity is predicted to increase in price.
Since these technologies already make financial sense what is needed now is a focus on investment, not regulation. According to an IEA report, the investment in these technologies needed to keep global temperatures below the 2 degree Celsius threshold is $44 trillion. The same report predicts the return on that investment in energy savings at $115 trillion. Polls from Yale University and the Washington Post show that the majority of Americans want to take responsibility for their carbon footprint and are even willing to pay if something constructive was done to combat climate change. Companies realize that they must engage in corporate social responsibility (CSR) with authenticity and transparency, or risk doing more harm to their reputations than good. Corporate responsibility is especially important to Millennial customers and employees.
We can take advantage of this desire to take responsibility and this willingness to pay and combine it with the huge need for investment in clean energy. Many individuals and companies have this desire to take responsibility and the willingness to pay but they do not have the tools to take responsibility or the opportunities to invest. One tool that could be used is Carbon Xprint. It is a process to measurably take responsibility for one’s carbon footprint by making incremental investments in clean energy projects. The investments are like CDs or savings bonds and they are priced to match the cost of a ton of CO2. To balance 10 tons of one’s footprint one would buy 10 units of these bonds. The money is dedicated to solar, energy efficiency, geothermal, and other certified clean energy projects.
This tool could be offered by banks and credit unions making it simple and accessible to all without the need for government intervention. It can help develop a better savings rate and a relationship between the bank and the populations of Millennials and underserved minority communities by offering a savings product that these populations believe in.
The world is going to change to clean energy. The question is not “if”, the question is “when”. Let the politicians fight amongst themselves. We have work to do.
