Richard G. Lugar, United States Senator for Indiana

Expert Commentary

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The Case for a Comprehensive, Globally-Focused Energy Policy

Rebecca Brown
Program Manager, Citizens for Global Solutions

Rebecca Brown

Fossil fuel dependence is one of the greatest challenges facing the United States and the world today. Growing recognition of the negative consequences of fossil fuel dependence has led to increased support for policy solutions that will reduce domestic consumption of these fuels.

However, as the United States addresses its own fossil fuel habit, it must also look beyond its borders, acknowledging that the global scope of today’s energy challenges creates a situation of energy interdependence, in which other countries’ continued fossil fuel dependence will negatively impact the United States.

Impacts of Fossil Fuel Dependence:

Global dependence on fossil fuels has profound negative impacts on international security, the environment and economic development:

Reliance on fossil fuels acts as a check on U.S. foreign policy and limits the international community’s ability to respond to global crises.
Consumption of fossil fuels is causing global warming, rapidly changing the earth’s climate with devastating consequences.
Lack of access to modern energy resources and the rising cost of oil are hindering development and keeping millions of people in poverty.
Rapidly rising demand for oil combined with relatively small increases in global oil production capacity are introducing greater volatility into the oil market, increasing the risk of economically damaging price shocks

Even if the United States resolved its fossil fuel dependence tomorrow, it would still suffer as a result of the world’s continued dependence. In an energy interdependent world, the United States must engage internationally to develop shared solutions to common energy challenges. Otherwise the U.S. economy will remain vulnerable to the volatility of a tightening global oil market, other nations’ fossil fuel dependence will continue to undermine the effectiveness of U.S. foreign policy. Additionally, increased competition over scarce oil resources will trigger worsening conflicts, both within and between states, and climate change will continue unabated.

Outline of a Comprehensive, Globally-Focused Energy Policy

The United States needs a comprehensive, globally focused energy policy to deal with the challenges to security, development and the environment posed by the world’s fossil fuel dependence. Recognizing that the United States is embedded in a complex web of energy interdependence, such a plan would seek:

To reduce domestic consumption of fossil fuels, whether produced abroad or domestically
To achieve a global transition away from fossil fuel technology and towards diverse, sustainable energy sources, including:
1. Support for the creation and dissemination of alternative energy technologies at an affordable price
2. An adoption of these alternatives and a corresponding reduction in fossil fuel consumption by major consumers – in particular the United States, India and China
3. Working with developing countries to ensure access to the clean and safe energy tools they need to meet their growing energy needs and lift themselves out of poverty without contributing to global warming
4. Providing alternatives to nuclear power for countries that wish to diversify their energy sources
To ensure that the world’s energy resources are not used as political bargaining tools.

Focus on Developing Countries

An effective energy plan must recognize developing countries’ significant role in today’s energy market, and place special emphasis on working with these countries to meet their energy needs without contributing to global warming or undermining international security.

Over the next twenty years, 70% of energy demand growth will occur in developing countries, with China alone accounting for 30% of that growth. China is expected to surpass the United States as the world’s largest emitter of greenhouse gases by 2010; developing countries are predicted to account for more than three-quarters of increases in CO2 emissions between 2004 and 2030.

Helping developing countries gain access to the alternative energy technologies they need to meet their growing energy needs without significantly increasing their greenhouse gas emissions is essential in order to halt global warming. It will also prevent conflict and instability by reducing competition over fossil fuel resources.

Developing and disseminating alternative energy technologies on a global scale is key to accomplishing a successful transition away from fossil fuel consumption. Although it has its limitations, the Clean Development Mechanism (CDM) of the Kyoto Protocol is one example of an international financing device designed to stimulate private sector investment in new energy technologies while enhancing developing countries’ access to those technologies. However, building more effective mechanisms to support the development and dissemination of new energy technologies will require the US to re-engage internationally on energy and climate issues.

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