Midwest needs to step up efforts to compete in new-energy economy

Michigan and other states in the Midwest have all the ingredients to be a leader in the clean-energy economy, according to a report released April 21, but will need to step up efforts to compete effectively with other parts of the country and world.

The report, "Unfinished Business: What the Midwest Needs to do to Lead in the Clean Energy Economy," compiled by the National Wildlife Federation, finds that clean energy policies are already benefitting parts of the Midwest, creating thousands of jobs and generating revenue for cash-strapped cities. But the region needs new policies to realize its potential as a hub of clean energy manufacturing and use, and to prevent China or other countries from leading the way in the production and use of clean energy technologies.

The report issued this week is a scorecard evaluating regional progress—and shortfalls— in meeting goals put forward in 2009 by the bipartisan group of Midwestern governors to turn around the economic prospects of the region by becoming global leaders in the clean-energy economy.

The Ecology Center, a partner in producing the report, also was a participant in developing the Midwestern Governors Association platform, which was crafted with input from hundreds of state officials, business leaders, utility executives, agricultural interests and environmental advocates throughout the region.

Charles Griffith, energy and climate program director at the Ecology Center, was a member of the Bio-economy and Transportation Advisory Group that worked on the 2009 platform. Griffith believes that progress on policies to advance the development and use of clean fuels are critical to the Midwest's economy, both in terms of jobs and consumer spending.

“Implementing the MGA recommendations on low-carbon fuel policies would not only strengthen the region's agricultural and manufacturing economic base, but would also help the region respond to rising fuel prices while also reducing a major source of carbon emissions,” Griffith said. “It’s a win-win – we keep more of our dollars in the region, while also doing our part to reduce carbon pollution.”

“The Midwest has seen some important successes—but overall is not reaching its potential to lead in the clean energy economy,” Zoe Lipman, a senior manager at the National Wildlife Federation, said. “This report affirms that the Midwest has the natural resources, human capital, manufacturing base and entrepreneurial spirit to lead in the clean energy economy. But unless public officials act, the region may one day be left to ponder ‘what might have been’.”

The 2009 platform made recommendations for state action in areas such as energy efficiency and renewable energy, as well as recommendations for regional collaboration to pave the way for Michigan and other Midwest states—Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Ohio, South Dakota and Wisconsin—to lead in the clean-energy economy. Studies have shown that clean energy could create as many as 1.2 million jobs in the Midwest over the next decade, with one-third of those in high-wage, highly skilled manufacturing positions and construction jobs. Those gains, the report warns, hinge on state and regional action. The report issued this week reviews progress to date across the region, identifies notable successes, and assesses grades—A through F—on regional efforts to meet six clean energy goals:

• Renewable energy: Regional grade: B- 
• Energy efficiency: Regional grade: B 
• Building codes: Regional grade A- 
• Low carbon fuels: Regional grade: C+ 
• Transit: Regional grade: D 
• Reducing greenhouse gas emissions: Regional grade: C- 

According to the report, “There has been important progress within our region in capitalizing on the clean energy economy, but that needs to be more fully realized over the next two years.” It continues: “Absent prompt government action on policies that would support the clean energy economy, the Midwest will lose more of its competitive advantage to China and other nations.”

A PDF of the report is available here.