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Green Innovation

Clean Energy Innovation insights

IEA Report Cover

Finding a New Direction in Climate Change Policy

It’s clear that the world is losing the race against global climate change. The International Energy Agency put numbers to this fact in a new report, Tracking Clean Energy Progress 2013, which finds that, “the amount of CO2 emitted for each unit of energy supplied has fallen by less than one percent since 1990.” In other words, for all of the global growth in renewable energy in the last decade, the world continues to rely on fossil fuels to the detriment of more global warming. Of course, this has to change and change fast.

This past weekend, I participated in a day-long symposium at Villanova University aimed at discussing what kind of changes need to be made. The conference hook was brought on by Rutgers Law Professor Howard Latin who provided the keynote address based on a book he published late last year titled Climate Change Policy Failures that argues conventional climate policy approaches fought for during the last twenty years such as cap-and-trade, international negotiations, and emission regulations won’t successfully produce deep carbon reductions. Latin contends that these “incremental” policy approaches simply kick the emission reduction can

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European Carbon Market: Good Branding, Poor Substance

By Roger Pielke Jr, a Professor of Environmental Studies at the University of Colorado. Originally published at the Lowy Institute for International Policy Interpreter Blog

Last week, in a surprise to many, the European parliament defeated a proposal to postpone the auctioning of emissions permits, a move that would have propped up prices in the bloc’s carbon market, known as the EU Emissions Trading Scheme or ETS. The market reaction was quick and brutal, with the price of carbon allowances falling by more than 30%. The political reaction was similar — the Wall Street Journal wrote that the vote was the ‘equivalent of the pope renouncing celibacy‘.

Such proclamations are not limited to those opposed to action on climate. In London, a carbon industry insider explained that ‘We have reached the stage where the EU ETS has ceased to be an effective environmental policy.’ However, the fact that the ETS has fallen short of expectations has much more to do with unrealistic expectations than it does with a surprising decision by the European parliament. After all, the price of EU emissions allowances was €4.50 before the

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Obama’s Budget Boosts Support for Energy Innovation

President Obama released his long-awaited FY2014 budget request and while it’s unlikely the budget will be taken up by Congress in its entirety, it remains an important document. Namely, the proposal is significant because it steadfastly argues that America can continue to support next-generation industries like clean energy. In fact, the President’s proposal budgets for a number of high-profile, high-impact programs, including those aimed at growing the domestic clean energy manufacturing sector, reduce transportation fuel use, and calls on Congress to fund a new Energy Innovation Hub to transform the electricity grid.

Across the board, the FY2014 request boosts key energy innovation offices at DOE by about 15 percent compared to the FY2013 Continuing Resolution and seven percent higher than the President’s FY2013 request. The lion’s share of budget gains are aimed at the Office of Energy Efficiency and Renewable Energy (EERE), which would see a budget increase of 54 percent from FY2013 CR levels, and at the Advanced Research Projects Agency-Energy (ARPA-E),  which would see a budget increase of 46 percent.

Expanding Research Capabilities in Advanced Energy Manufacturing

The largest budget increase target at EERE – 22 percent to

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Budget jar

President Obama’s Budget Promotes Innovation but More Work Needs to be Done

Innovation is one of America’s most prized assets. If our country is going to successfully compete on the global stage over the course of the next several decades, we must develop the new technologies, businesses and industries that will allow us to keep pace. President Obama’s just-released budget for 2014 contains several key components that further this goal.

ITIF applauds the President’s $1 billion request to create a series of manufacturing innovation institutes that will help propel advanced manufacturing and rejuvenate a sector of our economy that has been hit especially hard over the past decade. The National Network for Manufacturing Innovation will create 15 advanced manufacturing centers across the country that will spur research, development and deployment of next generation technologies, products and processes. As ITIF has shown, improving manufacturing innovation is central to enhancing American competitiveness and furthering economic development and business creation.

On energy innovation, the President’s budget request continues to push for greater public investment in the development of new clean energy technologies. The budget proposes boosting clean energy research to nearly $5 billion, a 15 percent increase compared to the FY2013 Continuing Resolution (CR)

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Ernest Moniz’ Confirmation Hearing Underscores Importance of Innovation

MIT physics professor Dr. Ernest Moniz has yet to receive Senate confirmation to serve as the nation’s next Energy Secretary, let alone begin his tenure. This hasn’t stopped speculation about what a Moniz-led Department of Energy (DOE) might look like. National Journal quotes one Brookings Institution scholar as saying “I think it will be a very different agency than it was in the first term. Ernie knows climate change, but also unconventional oil and gas and coal and nuclear. He will push the president towards a more balanced policy.” But if Dr. Moniz’ comments during his confirmation hearing yesterday are any indication of what would come from a department under his leadership, clean energy innovation has a good chance of remaining a top priority for the DOE.

Although the hearing covered a host of topics, ranging from cybersecurity to nuclear waste cleanup, the importance of public investment in research and development emerged as a topic of discussion at several points. Moniz’ opening statement actually started with a strong defense of a continued DOE role in research: “More than a hundred Nobel Prizes have resulted from DOE-associated research. DOE operates an

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Fear Not, Australia Cabinet Merger is Actually Better For Climate Change Mitigation

Last week, the Australian government announced the merger of two cabinet-level departments, the Department of Climate Change and Energy Efficiency and the Department of Industry, Innovation, Science, Research and Tertiary Education. Unfortunately, moving the stand-alone department on climate change has raised concerns that Australia is taking the climate change challenge less seriously. But the merger is actually a welcome sign of growing international recognition that innovation policy and climate change mitigation are inescapably linked and it should further mitigation efforts, not hinder them.

On the one hand, Australian Prime Minister Julia Gillard describes the creation of the new Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education as “inevitable, natural, logical.” On the other hand, the leader of the Australian Greens, an opposition party, criticizes the move as a “retreat on addressing global warming.” But the Gillard government has already demonstrated a firm commitment to combating climate change with the recent creation of entities like the Climate Commission, an independent source of information about the science of climate change, and the Climate Change Authority, which provides expert advice to the Australian government on climate change mitigation

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Talking Energy Innovation with ARPA-E’s Cheryl Martin, Part 3: Linking States to Federal Energy Research

I recently sat down with Dr. Cheryl Martin, the Deputy Director of ARPA-E, the federal government’s premier program for investing in high-risk, high-reward energy research and development. The interview covered a lot of ground and touched on different aspects of America’s energy innovation ecosystem, so it’s being published as a multi-part series, lightly edited, and broken up into cohesive topics.

In part 1 of the interview, Dr. Martin took a deep-dive into the lessons ARPA-E has learned in its few short years of existence. In part 2, we covered ARPA-E’s efforts to link research and emerging technologies to the marketplace. In particular, Dr. Martin discussed the independent path ARPA-E is traveling by building relationships with potential end-users of emerging energy technologies, like companies, the Department of Defense, and utilities such as Duke Energy.

Dr. Cheryl Martin, Deputy Director of the Advanced Research Projects Agency–Energy (ARPA-E).

Dr. Cheryl Martin, Deputy Director of the Advanced Research Projects Agency–Energy (ARPA-E).

But one potential partner often not discussed at length in national energy policy discussions is states. States are in many ways more active in the clean energy space than the federal government, in particular on technology deployment policies. Over 20 states have created clean

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Talking Energy Innovation with ARPA-E’s Cheryl Martin, Part 2: Linking Research to Market

I recently sat down with Dr. Cheryl Martin, the Deputy Director of ARPA-E, the federal government’s premier program for investing in high-risk, high-reward energy research and development. The interview covered a lot of ground and touched on different aspects of America’s energy innovation ecosystem, so it’s being published as a multi-part series, lightly edited, and broken up into cohesive topics. In part 1 of the interview, Dr. Martin took a deep-dive into the lessons ARPA-E has learned in its few short years of existence.

In part 2, we cover a pervasive issue in innovation policy: linking research and emerging technologies to market. In particular, a major concern of ARPA-E is that doesn’t have a dedicated end-user that’s going to procure emerging technologies, like DARPA has at the Department of Defense (DOD). DARPA is ARPA-E’s kindred spirit and many opine that until it gains a large-scale early adopter, its impact won’t reach that of its defense brethren because it won’t be able to bridge the technology “valleys-of-death” that plague many new innovations from reaching commercial scale.

Of course, ARPA-E’s agency home — the Department of Energy — doesn’t procure energy technologies

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Talking Energy Innovation with ARPA-E’s Cheryl Martin, Part 1: ARPA-E’s Lessons Learned

Dr. Cheryl Martin is the Deputy Director of ARPA-E, the federal government’s premier program for investing in high-risk, high-reward energy research and development. She’s the heir apparent to Arun Majumdar, the first Director of ARPA-E who departed last year after helping spin-up the program and bring it to national prominence.

She assumes leadership less than four years into ARPA-E’s existence at an inflection point for the program as well as U.S. climate and energy policy. On one hand, government investments in energy innovation are declining and gridlock makes crafting a new comprehensive national energy policy a pipedream. On the other hand, ARPA-E recently hosted its fourth widely attended Energy Innovation Summit, a number of early investments are starting to show signs of success, and its bipartisan support continues to grow. It’s one of the few bright spots in an increasingly contentious energy policy debate.

Dr. Cheryl Martin, Deputy Director of the Advanced Research Projects Agency–Energy (ARPA-E).

Dr. Cheryl Martin, Deputy Director of the Advanced Research Projects Agency–Energy (ARPA-E).

I recently sat down with Dr. Martin and talked extensively about her unique take on ARPA-E, its potential legacies, and the evolving U.S. energy innovation ecosystem. The interview covered a lot of ground

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Congress Passes Full-Year FY2013 Continuing Resolution

This year’s budget process has been complicated by a number of factors: confusion surrounding the sequestration cuts, the absence of the President’s FY2014 budget proposal, an expiring Continuing Resolution (CR), and Congress reviewing budget proposals for FY2014 and appropriations bills for FY2013 at the same time. While the FY2014 budget is yet to be decided, last week the House approved the Senate’s version of the Full-Year Consolidated and Further Continuing Resolution Act of 2013, which funds the federal government for the remainder of the 2013 fiscal year. Since the current Continuing Resolution is set to expire on March 27, the bill, which now heads to President Obama’s desk to be signed into public law, avoids a government shutdown by a matter of days.

As shown in the figure, the new CR is not very different from the old CR in terms of investments in energy innovation. The previous CR was based on FY2012 funding levels, and the new CR lowers investments in energy R&D by less than one percent from FY2012 levels.

CR(2) graph

The table below shows the recent appropriations legislative history in relationship to FY2012 funding levels. The new

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