Federal Legislation

The U.S. government has a big role in leading the transition to clean energy. It's the largest funder and performer of energy research and development, with 12 federal agencies working on it, including the Department of Energy. The government also has various tools to manage energy R&D, such as research grants, tax incentives, and public-private partnerships.

The federal government also has a major impact on the demand for green products and policies. It provides funding for state and local projects, sets rules for multistate energy markets, and collects most of the tax revenue, making federal financial incentives the most effective.

The federal government is also crucial in scaling up new clean energy technologies. It regulates trade and investment, making it important for federal policies to address emissions that cross state lines or international borders. To be effective, carbon pricing, clean electricity standards, clean fuel standards, and clean product standards need to be adopted across the country and require funding from Congress, as well as support from the Department of Energy, the Environmental Protection Agency, and other federal agencies.

To get to zero emissions, we will need a massive amount of investment. The U.S. has mature capital markets that can help fund green initiatives, but the federal government can also partner with the private sector. Other countries and multilateral banks are also starting to get involved. However, the amount of investment required will be much larger than what government and banks can handle on their own, so they will need to find ways to tap into private capital. The investment horizon for clean energy is long, and the risks are high, so the public sector needs to use its financial strength to reduce the risk and extend the investment horizon. Mixing public and private money on such a large scale will be a challenge, but it's essential for finding the best solutions to transition to clean energy.

Gates, Bill. How to Avoid a Climate Disaster (pp. 210-212). Penguin Books Ltd. Kindle Edition.