FOUR POLICY PRINCIPLES FOR ENERGY INNOVATION & CLIMATE CHANGE: A SYNTHESIS

The report argues that reducing global carbon dioxide emissions requires a shift from a narrow focus on R&D to a broader 'public works' model of innovation. It outlines four key principles: expanding innovation policy beyond R&D to include deployment and non-technical barriers; pursuing diverse technology and institutional pathways; treating CO2 reduction as a public good to justify government procurement and demonstration projects; and collaborating with rapidly industrializing nations. The document specifically illustrates these principles by suggesting the U.S. Department of Defense (DoD) could accelerate building efficiency and small modular nuclear reactor (SMR) development through its unique procurement and infrastructure capabilities.

• Innovation policy must extend beyond research and development (R&D) because most innovation occurs in the private sector through incremental learning during field deployment. Effective policy should align R&D with deployment programs and address non-technical barriers, such as political resistance and market competition, that new technologies face.
• A successful innovation system requires multiple pathways, utilizing a diverse ensemble of technologies and a variety of government institutions to avoid crowding out new technologies. The report suggests encouraging competition between federal agencies, such as the Department of Energy, the Department of Defense, NASA, and the National Science Foundation.
• Because the market fails to price the negative effects of climate change, CO2 reduction should be treated as a public good, positioning the government as a primary customer. This 'public works model' involves using public procurement, regulatory mandates (like carbon performance standards), and government financing for high-risk, late-stage demonstration projects.
• International collaboration with rapidly industrializing countries, specifically China and India, is essential for significant climate action. The report notes that simple technology transfer is insufficient; these countries must develop their own innovation capacity, and the U.S. can benefit from the resulting increased innovation capacities abroad.
• The U.S. Department of Defense (DoD) is uniquely positioned to accelerate building efficiency innovation due to its massive infrastructure of over 300,000 buildings (2.2 billion square feet) and its ability to integrate research, procurement, and diffusion. An annual investment of $100 million over five years could fund demonstrations in areas such as smart microgrids and next-generation energy storage.
• Government procurement could accelerate the commercialization of small modular nuclear reactors (SMRs), which are less financially risky than large-scale plants. A major barrier to SMR development is the Nuclear Regulatory Commission's (NRC) licensing process, which typically requires a utility to be ready to purchase the device before licensing is considered.

APA

Clean Air Task Force (2010). FOUR POLICY PRINCIPLES FOR ENERGY INNOVATION & CLIMATE CHANGE: A SYNTHESIS. https://cdn.catf.us/wp-content/uploads/2019/10/21093556/Synthesis.pdf

Chicago

Clean Air Task Force. FOUR POLICY PRINCIPLES FOR ENERGY INNOVATION & CLIMATE CHANGE: A SYNTHESIS. 2010. https://cdn.catf.us/wp-content/uploads/2019/10/21093556/Synthesis.pdf.

Wikipedia

{{cite report |author=Clean Air Task Force |title=FOUR POLICY PRINCIPLES FOR ENERGY INNOVATION & CLIMATE CHANGE: A SYNTHESIS |date=June 2010 |url=https://cdn.catf.us/wp-content/uploads/2019/10/21093556/Synthesis.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cleanairtaskforce2010four, author = {{Clean Air Task Force}}, title = {{FOUR POLICY PRINCIPLES FOR ENERGY INNOVATION \& CLIMATE CHANGE: A SYNTHESIS}}, institution = {Clean Air Task Force}, year = {2010}, month = jun, url = {https://cdn.catf.us/wp-content/uploads/2019/10/21093556/Synthesis.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }