How to get to a zero-carbon economy

Saturday, July 24, 2010

Steven Pearlstein's column on climate policy and energy innovation ["Can regulation beget innovation?," Economy and Business, July 16] was half-right. Tighter environmental regulations have driven innovation while cleaning up smog-causing emissions from cars and power plants. But Mr. Pearlstein was wrong to suggest that merely pricing carbon will produce the low-carbon technologies we need.

Initial carbon prices will be very modest, while most forms of advanced carbon-free energy will be expensive. Carbon prices, consequently, will drive some additional demand for wind power and efficiency improvements -- and a lot of switching from coal to natural gas.

Deeper emissions reductions, however, will require development of technologies that won't meet foreseeable carbon prices; these include sequestration of coal's carbon dioxide emissions, improved storage of renewable energy, offshore wind power and, possibly, atmospheric carbon capture.

With or without carbon pricing, more direct government actions will be needed to spur development of low-carbon technologies, such as aggressive procurement of advanced energy technologies to catalyze markets, sponsorship of first-of-kind commercial demonstration projects for new technology, and setting carbon performance standards for power plants.

Getting to a zero-carbon economic system by 2050 will be a much heavier lift than previously thought. It's time to start.