REPORT: US Risks Falling Behind Other Nations in Financing Clean Technologies
New Green America/Clean Edge Report Analyzes Five Most Promising Financing Models To Put US Back In the Lead Globally on Clean Tech
October 22, 2009
Washington, DC – Although significant clean-tech investments are being made in America, the United States risks losing ground to other nations -- such as China and South Korea -- that are pursuing aggressive clean-tech growth initiatives, according to a new report being released today by Green America and Clean Edge Inc.
The good news: innovative financing models are available to keep the U.S. competitive in the clean-technology race. The new Green America/Clean Edge report analyzes five clean-tech financing models that hold the most promise for America, including Clean Energy Victory Bonds.
The report, Five Emerging U.S. Public Finance Models: Powering Clean-Tech Economic Growth and Job Creation, can be downloaded for free at Clean Edge (http://www.cleanedge.com/reports/reports-financemodels.php) or Green America (http://www.greenamericatoday.org/PDF/FiveEmerging_US_PublicFinanceModels.pdf).
Green America Executive Director Alisa Gravitz stated: “Addressing climate change, energy security and job creation at the speed and scale we need requires aggressive growth in clean-tech sector in the United States. It is clear from the research contained in this report that we need a range of financing approaches to fulfill the promise of the United States to remain a clean-tech leader for years to come.”
Ron Pernick, co-founder and managing director of Clean Edge, said: “For many years, clean-tech leadership in the U.S. has been largely at the state level. Federal investment through the five financing models overviewed in the report could help to ensure the nation’s economic competitiveness while also proving assistance to the states. These models can help the country garner the myriad benefits of a clean-energy future – job creation, energy independence, climate and pollution mitigation and economic competitiveness.”
The five clean-tech financing models outlined in the Green America/Clean Tech report are:
- Clean Energy Deployment Administration (CEDA), also known as “The Green Bank,” which would provide loan guarantees, credit enhancements and other financial tools to stimulate private sector lending and investments;
- Clean Energy Victory Bonds, which would allow millions of Americans access to investment in the clean-tech sector through safe, long-term government bonds;
- Tax Credit Bonds, which offer investors a tax credit partially or fully in lieu of interest payments;
- Federal Loan Guarantees, which have a track record of creating industry development; and
- Clean Tech City Funds, which provide lending directly to homeowners and are showing promise in cities nationwide.
The report reaches several conclusions about the need for federal involvement in clean energy financing to keep the U.S. competitive. It points out: “Federal involvement to finance clean-energy development at the city, state, regional and federal levels is necessary to move forward with a clean-energy future. Strong federal clean-energy financing mechanisms should provide a framework for clean-energy deployment. Solid, predictable and long-term federal regulatory and policy frameworks and support are needed, including in deployment of smart grid and renewable, a nationwide price on carbon, a federal renewable energy standard and a shift from imported fossil fuels to domestic clean energy. Additionally, the financing models outlined and analyzed in the report are not mutually exclusive but instead should be used in combination to ensure continued growth and to maximize the benefits of U.S. clean energy.”
ABOUT GREEN AMERICA
Green America (formerly Co-op America) is a nonprofit consumer and business membership organization founded in 1982. It is a green economy advocacy organization, working to harness economic power—the strength of consumers, investors, workers and businesses—to create a socially just and environmentally sustainable society.
Clean Edge, Inc., founded in 2000, is the world's first research and publishing firm devoted to the clean-tech sector. The company, via its publications, events, and online services, helps companies, investors, and governments understand and profit from clean technologies. Clean Edge, with offices in the San Francisco Bay Area and Portland Oregon, offers unparalleled insight and intelligence on emerging clean-tech trends, opportunities, and challenges. Among its many activities, the company publishes the annual Clean Energy Trends and Clean Tech Job Trends reports; produces the annual Clean-Tech Investor Summit (along with IBF); maintains a number of benchmark clean-tech stock indexes with NASDAQ OMX including CELS, QGRD, and QWND; and produces Clean Edge Jobs. To keep abreast of the latest clean-tech news; access industry reports; learn more about our services; or sign up for free e-newsletters; visit http://www.cleanedge.com.