In an op-ed in the Washington Post this week John Doerr and Jeff Immelt make a persuasive case for considering the implications to U.S. international competitiveness in dealing with energy and climate reform.  They offer useful solutions for catalyzing innovation to meet our energy challenges and enhance our competitiveness.

The authors argue that in addition to the interrelated economic, climate, and energy crises the U.S. also faces a competitiveness crisis.  They contend that countries such as China have surpassed the U.S. in what they see as the next great global industry – clean energy.

They go on to contend that the U.S. will achieve energy leadership “Not through protectionism or massive government intervention but through the power of good old home-grown innovation.”  They propose five policies for advancing U.S. innovation and competitiveness: placing a price on carbon and capping carbon emissions to send a long-term market signal that low-carbon energy is valuable; encouraging a transformation among utilities that promotes energy efficiency through incentives, a renewable electricity standard, and a smart grid; setting energy standards for buildings, cars and appliances; substantially increasing energy research and development; and opening new global markets for American clean-energy products through a robust trade policy.

While many will disagree with some of the prescriptions, the basic premise is sound and the need for action is undeniable.  The U.S. has always adapted best to change when it has led the way.  We still have an opportunity to lead the coming global energy revolution, but we must act now.

The Reform Institute hosted a national energy symposium in April where participants also indentified the need for innovation and reform.  A forthcoming report will provide findings and recommendations based on the discussions at the symposium.