NOLAN RIEGLER

November 26, 2010

This week a group of international investors, responsible for some $ 15 trillion in assets, called on "nations" to take climate change seriously. According to the fund holders, if the world, and particularly the United States, doesn't "take decisive action" it will likely face even worse economic disruptions than the recent recession.

While money may talk, it's not clear that this Congress will be willing to listen. Former Republican Representative Bob Inglis, once a ranking member of the Subcommittee on Energy and the Environment, is certain that he lost his bid at re-election due to his support for the climate change narrative (though he did not vote on the climate change bill). There are 100 fresh, mostly Republican faces in the 112th Congress, 50 of whom doubt man made climate change, and 87 who won't support any climate change initiative that increases government revenue. The most recent House Science and Technology Committee meeting featured a debate between well-known climate scientists and skeptics invited by Republican lawmakers. Representative Inglis, frustrated at the future of the Committee, spoke frankly: "To my free enterprise colleagues, whether you think it's all a bunch of hooey, what we talk about in this committee -- the Chinese don't, and they plan on eating our lunch in the next century, working on these problems. We may press the pause button for a few years, but China is pressing the fast-forward button."

California is listening, however, as is its outgoing Governor, Arnold Schwarzenegger. Despite its budget woes, the state, which is also the world's eighth largest economy, has been steadily poising itself to become a haven for clean technology and growth. The state's recent election saw an alliance between environmental groups and capital investors to defeat a ballot initiative that would have stopped a statewide, greenhouse gas emissions reduction plan. Recently, the first deal was brokered under that plan's cap and trade program, 18 months in advance of its full implementation. Governor Schwarzenegger also recently met with the governors of Oregon and Washington, and the premier of British Columbia to discuss two massive infrastructure developments: a coast –spanning high speed railway and an electric vehicle corridor.

Even as his state leadership role draws to a close, "the Governator" plans to continue to work to promote climate change policy. He recently unveiled his plans to form the R-20, a "global alliance of city and state leaders working together to combat climate change." The R-20 plans to use capital from the developed world to create clean infrastructure in the developing world. The alliance would work as an alternative to other clean investment schemes, hoping to "fill the gap" where some of these have failed. Explaining his motivation, Schwarzenegger noted the "global" focus of many of his previous careers. "Everything I have ever done, I always was interested in doing it globally -- if it was the fitness, if it was the bodybuilding, if it was entertainment and acting and show business." Mr. Schwarzenegger emphasized the need to make climate change "hip" and "sexy," and believes he's just the man for the job. "I think that I have the talent of speaking the language in such a way so that the world understands it rather than making it complicated."

Sources:

"Governator" sees fighting Climate Change as his next Role. EEnews.net (Nov. 19, 2010, 8:03 AM) http://www.eenews.net/climatewire/2010/11/19/8/.

Brett Israel, Global Warming likely to get Cool Reception in Congress, LiveScience (Nov. 4, 2010, 3:41 PM), http://www.livescience.com/environment/elections-climate-roundup-101104.html.

Lauren Morello, House hearing foretells the future under GOP control, EENews.net (Nov. 18, 2010, 7:29 AM), http://www.eenews.net/EEDaily/2010/11/18/8/.

Neela Bannerjee, International investors Issue Global Warming Warning, L.A. Times, November 16, 2010, available at http://www.latimes.com/business/la-fi-climate-financiers-20101117,0,6204171.story

Jim Efstathiou Jr., Simon Lomax, Bloomberg News, NRG carbon-trading deal is first for California, S.F. Chronicle, November 18, 2010, available at http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/11/18/BUOO1GDJ02.DTL.

Debra Kahn, Pacific Coast Leaders ink pacts on high speed rail, electric cars. EENews.net (Nov. 17, 2010, 12:35 PM), http://www.eenews.net/Greenwire/2010/11/17/25/.