14 July 2008

Clean Tech: Paulson and Lugar Support Clean Tech Fund

Senator Richard G. Lugar, a Republican from Indiana and Treasury Secretary Henry M. Paulson Jr (left) have come out in support of the Clean Technology Fund (CTF), which was proposed by President Bush last September.

In an opinion piece in The Washington Post, Paulson and Lugar announce their support, claiming the CTF will "stimulate private-sector investment in existing clean technologies and speed the deployment of emerging technologies once they are market-ready."

Using a mix of loans, grants, equity investment and credit guarantees to finance this incremental cost, the CTF will "help make the choice between clean and dirty technologies economically neutral."

The US will contribute US$2 billion, which will be matched by up to US$8 billion from other donors to the fund, which is to be housed at the World Bank.

"The fund recognizes that addressing climate change presents economic opportunities, not just constraints, and that with advanced technology developing countries can curb emissions growth without limiting economic growth," Lugar and Paulson write in their Op Ed, concluding, "If we do not act immediately to help provide developing countries with the right incentives, their investments today may lock in a legacy of highly polluting, less efficient technologies."

Read the full piece here.