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U.S. Mayors Climate Conference: Clinton II

Working with cities to create markets for green products

Posted by David Roberts at 9:41 PM on 04 Nov 2007

Read more about: Bill Clinton | climate | energy

My first impression of Clinton was that he'd just woken up, or that he was under the weather. He had a little bedhead, his voice was a bit croaky, and he was speaking slowly. This definitely wasn't the virtuoso Clinton of the 1998 SOTU. The fireworks were mostly muted, though there were a few flashes here and there. Still, on his worst day Clinton is never less than engrossing.


(photo: U.S. Mayors Conference)

He began by laying out the main three challenges of the 21st century:

  1. persistent inequality, abroad and at home;
  2. identity conflict, between peoples who think their differences are more important than their commonalities; and
  3. unsustainability.

The good news is, he said, that tackling the third will also do wonders for the first two. The clean energy revolution will spread jobs democratically, and it will offer us all something we can do together, a shared purpose.

Climate change is "a godsend, not castor oil." It's the greatest economic opportunity since the U.S. mobilized for WWII. It will produce enormous job gains. Meanwhile, cities cover 2% of the earth's land but are responsible for 75% of human emissions. So this is a perfect task for mayors: "That's your kind of deal -- you're doers."

Having thus framed the problem, he made the big announcement of the day: the Clinton Global Initiative, which has been working to put the C40 (the world's biggest 40 cities) into a purchasing pool to create economies of scale for green and efficiency products, was now opening that purchasing pool to every city that has signed the mayors climate agreement (728 at last count, I believe).

I discussed the CGI purchasing pool idea here. It's quite brilliant -- all these mayors, no matter the size of their city, will have access to cheap goods and services to help them go green. Meanwhile, manufacturers of those goods will have access to enormous bulk orders with some certainty about the market. Prices will rapidly fall, and so will emissions.

The other big announcement is that the CGI has partnered with Wal-Mart to find and develop energy efficient products and bring them to market.

Thus is Clinton, through sheer force of personality, creating a huge market for green goods and a huge supplier.

Part of the market will be retrofitting existing buildings, which is a huge, huge opportunity. Right now it's not a user-friendly process, but if mayors can help organize the market, establish some benchmarks and best practices, and encourage banks to develop new financing mechanisms, this could represent enormous economic and environmental gains. And it's work that can't be outsourced.

Every 5-8 years, the U.S. economy needs another new source of good jobs, to keep median wages from falling. Ours have been falling because we've passed up on green tech jobs. It's time to take advantage of them.

We have to prove to the world that this stuff makes economic sense, that its an opportunity, not something to fear.

"When you're older, you'll look back and thank God you were in this position at this time. This is not boring -- this is fun!"

Here's the video, from the U.S. Conference of Mayors site:

"fun"!

This is brilliant!  Everything is changed, now.  No more gloom!  What talent that man has, that he can cheer us up even in spite of a recurrence of that persistent sinus/throat problem of his.

The only other person who has dared to be at all optimistic about global warming is Al Gore, in fact, whose message on receiving the Nobel Peace Prize included the comment that GW is a great opportunity to create international fellowship.  Somehow, though, he did not quite make it sound Clintonianly cheery.

Of course, in the vision of Bill Clinton, the people who seem likely to have the most "fun" are the venture capitalists, not unlike how it was in the 1990s.

So the next question is: Is Hillary on board?  Is it finally time for all of us Hillary-doubters to surrender and pass over to her camp?

Chickens deserve our true friendship! So do fish! So do other sentient beings! Let us learn to be kind.

Bulls***

"A Godsend, not castor oil" - are you sure this wasn't George Clinton hitting some top funk notes then bringing it down again with a dose of messy reality?

Climate Change is the result of the economic systems that Bill Clinton is in such awe of: it is NOT a Godsend, it is a bloody great mess that we are now struggling to get out of. By simply leveraging the existing systems that created the problem it will never go away.

There may be some incremental changes for the better, but the consumer culture has its claws into the rest of the world, so while the USA and Europe ekes out a few percent reduction in GHGs, the newly industrialised world will be pumping out even more because the consumer culture has just taken its foot off the pedal in the West.

The Mayors Agreement will knock a few thousand tonnes of CO2 off the global total each year, Wal*Mart will look great, so can carry on selling the cheap goods from China that are ramping up the greenhouse effect, and we can carry on spending and driving and flying and air conditioning because the system says that living in the consumer culture the only way to be. Nothing will get better while we accept that system.


Keith Farnish www.theearthblog.org

farnishk --

Although I agree with you that Clinton has been a major enabler of corporate goals in the past, as I discussed in this post, Clinton's initiative is something the cities should be doing anyway, and it's a wonder it's taken this long for them to get together.  Buyer's clubs are critical, as I explain in the post;  for instance, in the case of subways,  the lack of coordination among American cities actually helped lead to the current situation in which there is no American subway builder.

Good for Bill

Previous comments notwithstanding, this is exactly the right message.  First, because you will not mobilize people with gloom & doom nearly as fast as you mobilize them with optimism.  Second, and more importantly because he's right - we have massive opportunities to invest in profitable GHG reduction technologies from better lightbulbs to cogen - and of course, will then reap untold economic gains from levelling the playing field and cutting back on subsidies to existing paradigms.  (For example, the 6 - 10 cents/kWh estimated health costs of coal that are borne by our income taxes rather than the cost of power.  Cut back on coal and there's more money in your pocket, even if the route is indirect.)

As long as we frame climate change as a battle between wallets and morals, we will further the debate at the expense of action.  But as soon as people realize that you can actually make $ doing this stuff, a failure to act looks like stupidity from both angles.  Keep on this message!

What is cash?

Sean

While $$$s matter, then the problem will not go away. This is a hard reality that most people will not accept: if you live comfortably in a culture that depends on money for its existence then of course you would be stupid not to fight it - but then, I don't live comfortably in this culture: I am very uncomfortable with it.

The value that we put on economy is defined by the economy itself, it is self-perpetuating. The system says that the system is good, so it must be good - and don't worry about the little person in the corner saying that the system is lying. Stamp on them! Nothing to see here.

If people think that you can make money and save the planet then people will support that - of course they will. But you can't make money and save the planet - not enough to keep the system running. If everyone refused to buy half of the goods they currently buy, the economy would collapse overnight. But that might save the planet.

See what I mean?


Keith Farnish www.theearthblog.org

Lovins

I saw Lovins making this point recently also.  The boom in renewable energy will not cost economic growth, stability, and oppurtunity..it will expand it.

The monopoly control of energy is like a huge tax built into the world economy.  And yet sufficient energy is freely available everywhere on spaceship earth.  Why pay that energy tax to multinational corporations.  Why fight wars for them?

Go get 'em Bill!  

http://amazngdrx.blogharbor.com/blog

Don't count our chickens yet

This could lead to things like increased biofuel mandates and subsidies and other examples of city governments not being very bright. God knows what that list might entail: hydrogen fueling stations, corn ethanol and soy biodiesel pumps, and on and on.

 

In the end, it all comes down to biodiversity. Poison Darts--Protecting the biodiversity of our world

Keith,

While I'm happy to join hands with you, sing folks songs, braid each others' hair, and wait for the day when money doesn't matter (to other people of course -- we already have our money), perhaps we should let Clinton make concrete, measurable progress in the meantime.

grist.org
Oh dear!

David

You have no idea how silly your post sounds. Feel free to throw everyone who doesn't obey the culture into the dumpster - for my part I'm going to look forward (and act towards) a future where the planet actually matters more than gross human consumption.

I recommend you watch "What A Way To Go" and then look at what you have just written.

The bulls*** was directed at Bill, BTW, not you.

Keith


Keith Farnish www.theearthblog.org

consumption

I, the moderate, don't think it is either or.  I don't think we have to stop spending if we redirect spending in the right ways.

Indeed, we might have to.  If organic, free-range, potatoes cost cost more than bulk chemical potatoes, then maybe we have to skip the Starbucks to pay for them.

(If a really nice bicycle costs a few grand, that might not be so bad, if we are saving that much on fossil fuels.

"organizing markets"

Clinton has an interesting way of sounding like he's very pro-markets while he's actually trying to solve the problems of markets.  He keeps talking about organizing markets, but markets aren't suppose to need to be organized.  Why haven't markets enabled wide-scale retrofitting?  Why does this market need to wait for Clinton to come in and "organize" it, and why does the organizing agency have to be a city, which is a government?  Maybe because the market failures with regards to, oh, wide-scale efficiency and renewable energy, to take a couple of examples, are so gross that governments have to step in and "organize" them.

And by the way, not having heard Hillary's speech, why doesn't she push the jobs,jobs,jobs that her husband does?  it's still the economy, stupid, and Bill seems to think it's a winner.

Jon

Hillary's speech was highly focused on new jobs, green-collar jobs, job training, etc. Believe me, it was jobs jobs jobs. She sounded eerily like her husband on this stuff.

grist.org
Right on!



Musing on organizing markets

Jon:

Great comment - and worth noting that the phrase "organized markets" has been bandied about in a lot of places lately, and it strikes me as one of those phrases that never costs you a vote, but means very different things in different places.

Your concern is spot on: a functioning market this side of the iron curtain doesn't need an "organizer".  That said - and as many a Grist post will attest - the Smithian market ideal is a rare thing, especially in an industry that is as large and so heavily regulated as our energy sector.  

My personal feeling is to give the benefit of the doubt initially, but keep asking the question.  If we are talking about the creation of a market environment that is at least temporarily sensitive to historic subsidies and part of a constructive transition, I'm OK.  If it also means that we're going to let market forces work while still maintaining some regulation to provide the usual consumer protections, that's fine too.  But if it means sticking lots of bureaucracy in a process that doesn't need it and/or a fear of market forces, that's troubling.

In any event, let's keep watching.

As far as I can tell ...

... what Clinton means by "organizing" this market is just getting buyers together to form purchasing pools, and finding suppliers who can meet the demand at scale. He's trying to make it easier and cheaper to move these products to market faster.

Remember, he's not in gov't. He can't "organize" anything via government bureaucrats. He's talking about an initiative that mixes philanthropic and private sector efforts -- it's quite innovative and doesn't at all fit into the old command-and-control models for which some lefties were (justifiably) criticized.

grist.org

Yes, basically...

...although he actually is organizing government bureaucrats, not that I want to turn anyone against him, because it's the cities (and countries in the case of AIDS medicine) that are forming the buyers' clubs -- which I think is a great idea, but notice that they are buying from "the market", that is, private firms.  So it certainly has nothing to do with "controlling the means of production", it's more like "buying from the privately-held means of production".  

It's a way to get around market "failures", if you want to categorize them as such, although I think some of these things (like research) we would agree are better handled by government anyway.  

But not to get off the point, governments, as Bill points out in the speech (great speech) already buy copious amounts of goods, so it makes sense to "organize" the markets they are buying from, so that economies of scale can be realized -- but it could also help considerably to organize the cities and localities to guarantee long-term stability of markets (organizing them, again), exactly so that private firms know that a market will always exist -- my premiere example being the subway industry, which collapsed partly because of the lack of stability of the market.

So, yes, I think it's a great innovation, and should be a regular part of any "toolbox" of solutions.

heh

You know Teddy Roosevelt made his name as a trust buster, breaking "organized" markets.

I think you might watch out, what any "mayor's" organization could become, after a few terms, and with the wrong mayor.

We in the Cynic's Party are not surprised.

Jobs, jobs, jobs

Politics in a bushwacked, outsourced, failing economy.

It's all about restoring manufacturing and good jobs.  Keep it up Hillary!  Renewable energy re-volution will do it.

http://amazngdrx.blogharbor.com/blog

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