As the leaders of the wealthiest 20 nations descended onto English soil last week to convene for the G20 summit, the current status of global financial markets weighed heavily on their minds. In an effort to reach consensus, the leaders formulated a plan to further stringent regulations on markets and address the plight of the poor by pouring billions of dollars into the International Monetary Fund. Naturally, summit discussions centred around global finance, but, as The Guardian noted, environmentalists were disappointed by the lack of united effort on the part of all G20 members to tackle climate change more aggressively.
President Obama’s eight-day visit to Europe left the world transfixed. Many at home and abroad watched with eagerness as the new president swept through meetings, speeches, and dinners, leaving most of Europe in swooning adulation. It certainly would have served him well to make the case for more green investment and innovation, especially to developing countries whose economies are increasingly dependent on non-renewable oil and coal.
The United States is currently grappling with its own energy woes, but the president has affirmed his belief in turning a crisis into an opportunity. Two Democratic congressmen have already put forth groundbreaking legislation to strengthen national emission standards, boost power generation from renewable energy sources, and increase energy efficiency in all areas of government, manufacturing, industry, and transportation. The most important provision lays out a plan to develop a cap-and-trade system, whereby a limit is imposed on the amount of greenhouse gases companies can emit. These companies must have an emissions permit for every ton of CO2 released into the air; should they find themselves unable to stay within the limit, they can purchase additional permits from other companies. If they maintain optimal efficiency, they can sell their permits. The ultimate goal is to move towards a lower carbon economy, reduce pollution in the atmosphere, and reward companies that are the most efficient.
Business advocates and conservatives alike will certainly incite a push back to protect the status quo. But, the notion that investing in environmental initiatives will stifle the economy is simply absurd. Environmental legislation could lift sagging unemployment numbers by creating new jobs in a developing industry. Innovation in green technology and infrastructure can set the path for greater energy independence and allow more revenue to be generated. The United States cannot lessen the global carbon footprint without the coordination of other countries. It’s understandable that emerging economies like China, India, and South Africa would want to accelerate their industralization and afford all the same luxuries that the U.S., Canada, Japan, and much of Europe enjoy. However, the world’s consumption of dirty electrons grows even less sustainable. The steps taken thus far by the Obama administration and Congress are praiseworthy, but their leadership on the world scene is crucial.
Leading by example can convince reluctant nations that there is more prosperity and opportunity available in clean energy and a healthier climate.
