Innovation Policy for Climate Change

The report argues that the U.S. energy innovation system is in urgent need of reform, moving away from a reliance on the Department of Energy (DOE) and a hope for unpredictable 'breakthroughs' toward a portfolio of incremental improvements. It proposes treating climate mitigation as a public good and a public works endeavor, utilizing government procurement and competition between agencies—such as the Department of Defense (DoD)—to drive innovation. Through case studies of solar photovoltaics, post-combustion capture (PCC), and direct air capture, the authors emphasize the critical role of demonstration projects in reducing technical and cost uncertainties for large-scale deployment.

• The U.S. energy innovation system is overly dependent on the Department of Energy (DOE), which lacks the competitive pressures that drove military innovation. The report recommends fostering inter-agency competition, suggesting that the Department of Defense (DoD), Environmental Protection Agency (EPA), and state/local governments could provide valuable expertise and competitive force.
• Climate change mitigation should be redefined as a public good, allowing the government to adopt a 'public works model' for technologies that lack a market rationale, such as direct air capture and post-combustion capture of CO2.
• Technological 'breakthroughs' are unpredictable and should not be the central strategy for climate mitigation. Instead, the focus should be on incremental advances in existing or near-term technologies, as most innovation occurs in the private sector through a process of continuous improvement.
• Demonstration projects are essential for reducing technical and cost uncertainties, particularly for utility-scale technologies like carbon capture and storage (CCS). The report argues that the private sector should manage these demonstrations with government providing financial support and ensuring open dissemination of results.
• The U.S. government has failed to strategically use its purchasing power to foster energy innovation. By becoming a 'smarter customer' for energy-climate products in office buildings, vehicles, and transit systems, the government could create early markets and drive firm competition.
• The history of nuclear power serves as a cautionary tale of mismanagement by both the government (AEC) and utilities, where a lack of technical capacity and independent analysis led to massive cost overruns and reliability issues.
• Direct air capture of CO2 is currently severely under-resourced, with only about two dozen people worldwide actively exploring the technology. The report suggests it could productively absorb 20 to 100 times more resources in the near term.

APA

Sarewitz, D., & Cohen, A. (2009). Innovation Policy for Climate Change. Clean Air Task Force. https://cdn.catf.us/wp-content/uploads/2019/10/21093552/Innovation_Policy_for_Climate_Change.pdf

Chicago

Sarewitz, Daniel, and Armond Cohen. Innovation Policy for Climate Change. Clean Air Task Force, 2009. https://cdn.catf.us/wp-content/uploads/2019/10/21093552/Innovation_Policy_for_Climate_Change.pdf.

Wikipedia

{{cite report |last1=Sarewitz |first1=Daniel |last2=Cohen |first2=Armond |title=Innovation Policy for Climate Change |publisher=Clean Air Task Force |date=September 2009 |url=https://cdn.catf.us/wp-content/uploads/2019/10/21093552/Innovation_Policy_for_Climate_Change.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sarewitz2009innovation, author = {Sarewitz, Daniel and Cohen, Armond}, title = {{Innovation Policy for Climate Change}}, institution = {Clean Air Task Force}, year = {2009}, month = sep, url = {https://cdn.catf.us/wp-content/uploads/2019/10/21093552/Innovation_Policy_for_Climate_Change.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }