By Christopher Flavin for FORUM CSR international.

The Worldwatch Institute is working to head off catastrophic climate change by supporting efforts to cut global greenhouse gas emissions by at least half by 2050. Institute research has shown that energy sources such as wind, solar, and geothermal, combined with high levels of efficiency, can replace fossil fuels while creating new industries and jobs. Our researchers are working to inform policymakers about the potential for a post-carbon economy and how to achieve it, with a special effort to assist China, India, and other developing countries.

Recent Worldwatch research publication on building a low carbon economy includes Powering China’s Development, an in-depth look at China’s energy challenges and successes, and State of the World 2008: Innovations for a Sustainable Economy, which notes that improved energy productivity, deployment of renewable energy technologies, and enlightened government energy policies are key to slashing global carbon emissions.

In 2007, more than $100 billion was invested in new renewable energy capacity, manufacturing plants, and research and development – a true global milestone. With improved technologies, greater efficiency, and lower costs, renewable energy could one day replace virtually all the carbon-based fuels that are so vital to today’s economy.

Markets must reward innovation

Many governments are rightly moving quickly to tighten mandates that require more energy efficient buildings and motor vehicles. While they are a useful backstop to ensure that minimal rates of change occur and to remove the very worst technologies from the market, it is also essential that markets reward innovation and investment that strives to achieve the best possible performance.

For example, one important step in this direction is to de-couple electric utilities’ profits from the amount of power they sell by introducing a regulatory formula that instead rewards utilities for providing the best service at the least cost. California regulators have already made this change; as a result of this and other policies, Californians use less than half as much electricity per person as other Americans do.

In China, renewable energy will not by itself solve the nation’s pressing energy problems, in a nation that will soon pass the United States as the largest emitter of carbon dioxide from fossil fuels. But together with energy efficiency and the cleaner and more efficient use of coal, it can make a big difference.

For more information on Worldwatch research on building a low carbon economy, visit www.worldwatch.org. Christopher Flavin is President of the Worldwatch Institute.

The launch of FORUM CSR international takes place promotionally effective at “The Amsterdam Global Conference on Sustainability and Transparency” on May 7-9. Visit www.forum-csr.net for more interesting content about Corporate Social Responsibility.