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The failure of the United States to pass comprehensive clean energy legislation does not just pose serious long-term climate risks but also more immediate economic repercussions. A recent Ernst & Young Renewable Energy Country Attractiveness Indices shows that for the first time China has surpassed the U.S. to officially become the most desirable destination for clean energy investment. Bloomberg reports that:
“After sharing the lead with the U.S. in the first quarter, China moved ahead of the world’s largest economy to rank as the most appealing nation for investing in wind and solar power projects… In the second quarter of 2010, China attracted $11.5 billion in asset-financing for clean technologies, more than Europe and the U.S. combined, according to Bloomberg New Energy Finance.”
While China has made long term commitments to developing clean energy markets, such as a pledge to produce 15% of its electricity from renewable sources by 2020, the United States has failed to implement any long term strategy. Ben Warren, Ernst and Young’s environment and energy infrastructure advisory leader, noted that “What we’re seeing in the U.S. is a continued resistance to committing to long-term visible and transparent support for the sector. The U.S. market has always suffered from this boom-and-bust tax-based incentive regime.”
The U.S. government must show that it is committed to fostering clean energy technology development and deployment, or it will continue to fall behind China in this crucial sector. For more ideas on U.S. clean energy competitiveness strategy, see our recent article in National Journal, “How American Can Lead the Clean Energy Race.”
