In the partisan debates on climate change in the U.S., what is lost on many critics is the tremendous economic and job creation opportunities that the Paris climate agreement will bring to clean energy.
Over the past several years, 50% of all new electricity generation facilities built in the US and worldwide have been renewable energy, culminating in upwards of $300 billion in clean energy investments globally in just the past year. International opportunities are projected to be well over ten trillion dollars in commerce over the next 30 years. The Paris deal will clearly bolster the already remarkable growth, based on how well countries live up to their promises.
In the United States, that means putting in place long-term renewable energy programs that foster innovation, implementing clean energy efforts like the Clean Power Plan, and helping communities transition to renewables.
The breakthrough solar energy storage technology we are utilizing at SolarReserve, where the sun's energy is collected and stored thermally in molten salt, is just one example of how American innovation finds answers. With it, we can provide reliable solar generated electricity day or night, resolving a common criticism of solar.
The Paris deal has the potential to be a catalyst for an energy transformation that will go around the world. It will further accelerate the implementation of renewables, especially in emerging markets in Africa, Latin America, and Asia.
For example, in South Africa SolarReserve has been one of many companies working to dramatically accelerate clean energy implementation. South Africa's renewable energy program - which was announced at the 2011 climate talks - has been a driver for demand, cost reduction and innovation. In just four years this world-class program has resulted in over six gigawatts of awarded projects and more than $10 billion in investments into South Africa. As a direct result of this program, the cost of renewable energy in South Africa is now the same as new fossil fuel plants when compared to the per kilowatt-hour cost of construction.
South Africa's success is being replicated in other markets around the world, and the Paris agreement ensures that the transition to clean energy will continue at an even greater pace. But renewable energy solutions can't just be environmentally better if they are to contribute meaningfully to the energy mix. They must also be cost effective, reliable, and able to be deployed at a large scale.
In addition to government programs, some of the world's largest companies are making commitments to reduce their carbon footprint. Heavyweights like Kellogg's, Unilever, Google, Walmart, Bank of America, Patagonia, IKEA, Apple and Microsoft recognize that clean and sustainable energy is a key part of our economy going forward as customers demand this of their product suppliers.
The Paris agreement isn't just about climate change; it's about sustainable solutions to meet our energy needs now and in the next generation. It's about technology solutions in growing industries, and it's about job creation.
The U.S. was instrumental in leading the discussions of this critical international agreement, but the U.S. needs to lead the world in its implementation. We need to take the lead with policies for a cleaner environment at home that create jobs by the thousands and powered by the American technology innovations of the future.
Kevin Smith is the chief executive of SolarReserve, one of the world's largest builders of solar power projects.