Mackinnon Lawrence

Despite the clean tech sector’s emergence as the next big investment play, significant political and regulatory uncertainty remains heading into 2009.  Amidst falling crude prices and a severe economic downturn, speculation abounds as to whether the Obama Administration can deliver on a “New Green Deal,” both at home and abroad.

To date, most reports about what the Obama Administration will deliver are encouraging.  While it is doubtful the 111th Congress can wade through the worsening financial crisis in time to pass a stand-alone cap-and-trade bill, the safe bet is that legislation will target job creation around energy efficiency and renewables.  This is laudable – any commitment to a greener future is a break from the past and overdue.  Even so, just how aggressive the Administration’s efforts will be with regard to greening the economy remains to be seen.  Of greater concern is the rhetoric around job creation and a New Green Deal.  Both are short-sighted approaches that couch environmentally-sensitive federal policy in a post-New Deal framework.  The clean tech sector should monitor this carefully.