ASK THE EXPERTS
68
Hal Harvey
Public policy can
establish the
framework for
change
HAL HARVEY
What is the single most important thing
governments, business or individuals
can do to improve the environment?
70
John Fetterman
Set up a cap-and-trade system—and
create green jobs
70
Eduardo Bartolomé
Companies must
commit to
sustainability
71
William K. Reilly
Get the grassroots
engaged
The threat of climate change is our greatest environmental challenge. But the trend of increasing emissions of carbon dioxide and other greenhouse
gases is not a fait accompli. A small
number of highly effective policies can
put us on track for a stable climate and a
sustainable energy future. And all are in
the self-interest of the nations that adopt
them. Consider:
equipment found in most every factory,
nations can dramatically reduce energy
consumption while giving domestic
manufacturers a competitive boost in
the marketplace. Additionally, most
industrial emissions come from a few
industrial sources: cement, steel,
aluminum, and chemicals. Nations can
use tax incentives to get these industries to adopt international best-prac-tice technologies—with dramatic
savings as the bonus.
72
Mark Tercek
Invest in
“natural capital”
>> Buildings:
Strong building codes can cut energy
use by 75 percent—and thereby create
an energy bill dividend that pays a
steady yield for 50 years or more. But
developers of houses and office
buildings rarely pay the energy bills,
and so do not have an incentive to
build them for low energy consumption. Smart building codes with
effective enforcement can solve this
“principal-agent” problem and deliver
massive energy savings.
>> R&D:
Most nations spend a significant share
of their GDP on energy infrastructure
and related fuel consumption, but only
invest a tiny fraction of GDP in new
energy technologies that can help
address energy use in these key sectors.
Our future energy options depend on
today’s R&D investments. Let’s get busy.
>> Industry:
By enacting efficiency standards for
the millions of motors, pumps, boilers,
compressors, and other “universal”
>> Power:
The power sector is responsible for
nearly 40 percent of global greenhouse
gas emissions, but a few key reforms
can dramatically reduce emissions
while improving the reliability of
electricity supplies. By enacting
68 Americas Quarterly FALL 2009
