The perspective of energy and environment in the US is: one half green house gas emissions [GHG/Cap-n-Trade] and the other half energy industry [EERE]. While the private industry is unable to act on the potential added cost of carbon dioxide emission due to an unknown policy climate they are able to respond to the demands of their biggest customer [Walmart et al] - to reduce GHG and social ill will [Sustainability Scorecard]. Why? Because pursuing sustainability saves money! ...and builds a green conscious brand. Obviously, thru a consumer product lens, there is a win win in pursuing environmental impact reduction: $ and $. And although our politicians are incapable of acting as a body, and therefore signaling the entire market to do nothing, some very large entities have stepped forward to lead the way through the almighty dollar and free market economics. While we applaud this new found religion of cost savings through sustainability we must also highlight the return of corporate social responsibility [CSR]. "Its good business" say CEOs, and that's because it represents the social aspect of triple bottom line - both customers and employees.
What is interesting is the tie of sustainability to energy. Most of these sustainability actions are energy savings which garner additional capital expenditure ROI with federal, state, and local EERE incentives... which are the result of citizen demand. The government has been unable to put in place appropriate carbon emission costs to society so instead we are spending our citizenries money to fund these energy reduction actions in the private sector... at least fund a good portion. Of the $767B American Recovery and Reinvestment Act $61B is targeted at energy ($21B in tax incentives); DOE's $32B pot has only spent $7B and will continue to allocate $1B/mo through 2011. http://www.gao.gov/recovery/ There is still much support for energy waste reduction to hit the streets, and then make its way to actually paying for projects over the ensuing two year period. New industries need big support early (unlike Cash for Clunkers, auto bail out, and Wall Street handout) and of course still needs additional appropriate policy to get the long lasting effect we're all looking for.
The point is that although we all thought that Govt would would see GHG at large and industry would see $ at home, when industry reads the Tarot cards and acts along with a supporting governmental acting on behalf of society (the Executive branch anyway but no reason that shouldn't be the Legislative branch!) we have the combined incentives to move in the right direction. Lest not forget that we the people continue to fund the transition, through all mighty democracy: social economics US style!
Now just imagine if the finance arm hadn't played us all during the Neocon political era of this last decade - we'd have that fourth branch of government [Walstreet] fully in play on the New Energy Economy (and that's expansion market capitalism).
