A small group of corporate heavy-hitters has come together to sound the alarm for increased spending and focus on energy research and innovation in the U.S. (New York Times, June 10, 2010).
Seven of the country’s most respected business leaders have formed the American Energy Innovation Council, including luminaries such as General Electric CEO, Jeff Immelt, and Microsoft Chairman, Bill Gates. Their message: the U.S. Government needs to “triple investments in clean-energy technologies to boost the nation’s economic competitiveness and protect the environment.”
We’ve heard similar calls for action on clean-energy investment in recent years from a variety of voices from business and academia. What makes last week’s announcement unique, however, is the coming together of major corporate leaders from disparate sectors around a common “business plan.” And the fact that it was announced against the backdrop of our nation’s worst oil spill in history adds further to the uniqueness of the moment.
The plan calls for a tripling in clean-tech funding in nuclear fission, solar, wind and fossil fuels. It also proposes the formation of an independent energy strategy board, which would develop an energy plan and oversee large-scale demonstration projects as part of the “New Energy Challenge Program.”
The Council recommends a $20 billion commitment over 10 years for the Challenge Program, which would “unleash significant private sector resources as projects are developed.” Additionally, it suggests that the Federal Government create Centers of Excellence to “foster multidisciplinary collaboration amongst scientists, universities, federal laboratories, and other public and private institutions.”
In addition to Immelt and Gates, the Council also includes: Chad Holliday, Chairman of Bank of America (and former CEO of DuPont); Ursula Burns, Chairman and CEO of Xerox; Norm Augustine, Chairman of Lockheed Martin; Tim Solso, Chairman and CEO of Cummins Inc.; and John Doerr, a leading energy venture capitalist and partner at Kleiner Perkins Caufield and Byers.
The group clearly faces some stout headwinds in making the case to Congress and the Obama Administration to spend more federal money on energy research at a time of unprecedented budget deficits. Yet, we know that the barking dog is usually the one who gets fed first. And when you have seven notable best-in-breed barkers, it’s hard not to at least give the group and their plan a serious look.
At a time when the public is less inclined to believe our corporate leaders, I am ready to take these leaders at their word. They know the path to energy security will be long, and as Jeff Immelt puts it, “the world is not going to wait for the United States to lead. This is about innovation; this is about competition; this is about energy security.”
I hope someone listens and heeds the call.
