speeches
Energy in the 21st Century
Hannover, World Energy Dialogue
U.S. Ambassador William R. Timken, Jr.
April 25, 2006
The U.S. Advanced Energy Initiative Handout (PDF file)
Ambassdor Timken:
Good afternoon. It’s a privilege and an honor to participate in this discussion of energy policy as a member of this distinguished panel. A number of important issues have already been raised. It is clear that we face enormous challenges. Energy is key to human economic endeavors and our quality of life.
Economic growth, energy consumption and environmental issues are inter-related. As rising economic development leads to ever increasing demand for reasonable cost energy resources, maintaining a country’s energy security will not just impact that country’s economy but will also have national security ramifications.
In the last several years, we have seen the effect of increasing demand from individuals, industries and rising economic powers such as India and China on oil, gas and coal prices. On the consumption side of the equation, market forces appear to work. Rising prices make companies and private consumers pay attention to efficient usage and how they might better conserve. Rising prices also stimulate greater production. But we have also seen how vulnerable we are to non-market supply disruptions, such as political instability or natural disasters like Hurricane Katrina.
Today I would like to focus on what the U.S. is doing to address energy issues in the 21st Century. The United States has established a robust and flexible climate change policy that harnesses the power of markets and technological innovation, maintains economic growth and encourages global participation.
Major elements of the U.S. approach include implementing near-term policies and measures to slow the growth in greenhouse gas emissions, investing in climate change science, accelerating technology development and promoting international collaboration.
The United States is working in partnership with other governments, non-governmental organizations and, most importantly, the private sector to transform the way that energy is produced and consumed. Our approach draws upon the best scientific research, fosters the creativity of entrepreneurs and works with the developing world to meet our shared aspirations for our people, our economy and our environment.
In February 2002, President Bush committed the United States to cut its greenhouse gas intensity - the amount emitted per unit of economic activity - by 18 percent by 2012. In fact, U.S. greenhouse gas intensity actually fell 1 percent between 2000 and 2003 while our total economy increased by 1.23 trillion dollars. Since 2003, economic growth in the U.S. has been the highest in the industrialized world, creating so many jobs that unemployment stands at 4.7 percent. In spite of this growth, we are on target to meet the President’s 18 percent reduction target in greenhouse gas intensity.
How will we accomplish this? For its part, the Federal Government since 2001 has invested over 10 billion dollars to develop cleaner, less expensive, more reliable energy sources. In 2006, the President announced a further 22 percent increase in funding for clean energy research at the Department of Energy. These include our Coal Research Initiative, Solar America Initiative, expanding clean energy from wind, a Bio-refinery Initiative, and a Hydrogen Fuel Initiative. Legislation passed in 2005 legislated increased efficiency standards, expanded use of Alternative and Renewable Energy and provided tax incentives for more efficient vehicles and fuels.
Time doesn’t permit me to continue the long list of government initiatives. We have learned however that although government has a strong role to play, the top down regulatory approach is the wrong direction for the United States. Government, business and the private consumer must all be motivated to bring about substantial cumulative change.
The whole world is a source of energy, whether it be our gases and hydrocarbons, our temperature differentials, our waters and oceans, our winds, or solar power. The greatest source of solutions will be technology. For example, the company or nation that develops clean coal technology at an affordable cost will have a bonanza of opportunity.
I ask myself who are two natural partners in innovation? The U.S. and Germany. We are already leaders in the development of alternative energy. We are both modern, industrialized economies (the first and third largest in the world) that rely on energy.
Both of our governments are committed to energy efficiency and developing the next generation of energy technologies.
I note that Chancellor Merkel says the German conventional energy industry is committed to investing 30 billion Euros in new power plants and networks by 2012. Furthermore, she, like the President, has said Germany will increase research budgets for energy technology by 30 percent by the end of 2009.
I think a great step for energy in the 21st Century would be for the United States and Germany to re-invigorate the Commitments made by Chancellor Schroeder and President Bush in Mainz in February 2005. The Mainz Declaration represents the mutual commitment of the U.S. and Germany to cooperate on a variety of projects to improve energy security and reduce pollution and greenhouse gas emissions. It cites over 20 specific areas in which we work together to secure energy supply, improve efficiency, and promote the marketability and accessibility of renewable energy throughout the world.
Working even closer together, Germany and the United States can be major drivers of the future of energy in the 21st century. In doing so, we will benefit our citizens and the whole world.
