Looking Back this Week

On Saturday, the AP published a landmark article giving full and uncontested credibility to the scientific consensus on climate change. Underscoring the paradigm shift occuring in Washington on the issue right now, the article brings to the foreground George W. Bush's acceptance of climate change in his State of the Union Address on Tuesday.

"The years of resistance to the reality of climate change are melting away like the soon-to-be-history snows of Kilimanjaro." - Matt Crenson, AP

Addressing the topic of energy policy, President Bush proclaimed that the new way forward is through technology. He proposed an increase in the renewable fuels standard (RFS) from 7.5 billion gallons by 2012 to 35 billion gallons by 2017. He also spoke of "modernizing" fuel economy standards for vehicles.

The New York Times reported Tuesday in The Energy Challenge series that Bush would signal an increase in the RFS in his State of the Union Address. While pointing out the low energy efficiency of corn-based ethanol, as well as the impacts the industry could have on the agricultural economy and America's position as a leading exporter of corn, the piece summarizes the powers and policy decisions behind the ethanol boom.

The same issue of the Times showcased an electric-electric hybrid based on a Ford Edge crossover. This plug-in hybrid is the first to use a hydrogen fuel cell instead of a combustion engine for back-up. The primary battery is rechargeable directly from the grid via wall outlet, and will last 25 to 30 miles before the fuel cell kicks in. With a $2 million price tag, this one-of-a-kind vehicle will not be commercially available anytime soon, however, the standard plug-in hybrid concept has been gaining traction for its ability to buffer the electric grid.

In addition, a few interesting clean-energy statistics were reported in the Times on Tuesday. According to London-based New Energy Finance, North American private equity and venture capital funds beat out Europe in regards to funding clean-energy development start ups last year - despite the absence of US participation in the Kyoto Protocol. However, according to the Jefferies Group in New York, Europe is home to over half of the world's 22 most valuable publicly traded wind and solar companies. The piece attributed this fact to lapsing wind rebates in the states, as well as a more relaxed regulatory environment and a heightened focus on developing essential infrastructure for wind and solar farms abroad.