International climate policy is focused on technology innovation strategies, combined with public and private finance mechanisms. Clean Energy Group works with national governments and international organizations to develop the most effective innovation and public finance programs.

International Cooperation

Both in the United States and internationally, it has become clear that cap and trade policies will not be the dominant approach to accelerate clean energy and address climate change. Even if cap and trade is part of a larger package of policies internationally, a successful international climate agreement must include policies to accelerate climate technology innovation nationally and internationally through more aggressive, creative, and collaborative technology research and finance.

Technology Innovation Initiative

Over the past six years, CEG has worked with the World Bank, the U.K. government, and international foundations to identify global climate technology needs, with an emphasis on the poor, and to develop effective strategies to meet these needs. Key messages that come out of our work include:

  • Climate recovery will require new much cheaper technologies that serve the needs of the poor. This will demand innovation at all points on the technology value chain from technological breakthrough, to new business models, and financing schemes. 
  • Developing countries must be considered partners in any technology innovation initiative rather than passive recipients of transferred technology and capacity building. Indeed the theory and practical experience in other sectors show that many of the breakthroughs needed for low carbon technologies are likely to come from the developing world to be transferred to the West.
  • There are practical lessons to be learned on the structure and operational strategies for a climate initiative from international experiences in technology innovation in the agriculture, health and telecommunications sectors. These include:
    • Establishing the independence of any organization working on innovation,
    • Partnering with and relying on the private sector along with civil society in all aspects of the initiative from the board to implementation,
    • Designing results focused programs,
    • Tapping the global brain through emerging internet based tools.

Low Carbon Public Finance

Public funding agencies are crucial to solving climate change. Until new and emerging low carbon technologies are cost-competitive on an unsubsidized basis with their dirtier rivals, governments have little choice but to subsidize their progress if the spectre of climate change is to be addressed. It should be noted that this also is the conclusion of the International Energy Agency, which devoted unprecedented attention to the role of government support in its recently issued World Energy Outlook. The IEA said governments around the world spent $312bn in 2009 subsidizing the conventional energy industry but just $57bn on the clean energy sector.

To make these public investments more effective, closer global coordination through groups such as the UNEP Sustainable Energy Finance Alliance will be needed to share best practices, conduct joint research and look for opportunities to leverage private sector investment.

Read more about CEG's work on clean energy funding and finance.