Climate versus Growth?
The Obama Administration says it is laying the groundwork for a long, green, economic recovery. But plenty of people argue that the recovery part and the green part contradict each other.
One piece of evidence to support the pessimists emerged from Washington last week. Inside EPA reports that the administration environmental champions are not getting their way when it comes to the ongoing restructuring of Chrysler and General Motors.
Environmentalists are noting that neither Chrysler's bankruptcy announcement nor GM's most recent shareholder prospectus mention or endorse some of the administration's major environmental initiatives that impact the auto industry:
- EPA's pending GHG limit on the transportation sector
- National Highway Traffic Safety Administration's pending rule to tighten CAFE standards, or
- EPA's reconsideration of California's request to regulate tailpipe emissions.
As I've indicated before, I tend to be more sanguine about the prospects of melding a green economy and a recovery for the auto industry.
Detroit should take the initiative and leverage the administration's environmental inclinations to the hilt, recommending newer, bolder green innovations in exchange for additional support. For its part, the administration should hold the line and make sure that any auto industry that rises from the ashes because of taxpayer support is an environmentally sensitive industry as well.
A Business Model Stimulus
Most companies, naturally, are choosing to tighten their belts in this recessionary economy.
In this week’s New Yorker, James Surowiecki makes a compelling case for ramping up spending in a downturn. He cites Kellogg’s success launching and marketing Rice Krispies during the Great Depression.
I don’t know of many companies doubling down on consumer marketing right now, but I know plenty of companies looking to understand how the federal stimulus plan might be relevant to their business.
Since becoming law in February, the American Reinvestment and Recovery Act (ARRA) has dominated my conversations with my clients. Everyone from cement producers to plastic laminate manufacturers to defense contractors ask me how they can obtain stimulus funding. The answer, more often than not, is to go green.
The stimulus legislation is packed with incentives, not just for renewable energy and smart grid technology, but weatherization, energy efficiency, and transportation.
That’s causing corporate planners to alter their thinking about the sustainability of their products and services, to reappraise their markets, and to adjust their thinking – so they can get access to this money available right now.
Some liken the stimulus to a wave that washes through the economy just once. I see the effort more like a river (especially when you consider the President’s 2010 budget and the prospect of a second stimulus) steadily shaping the contours of the economy, helping turn America’s business landscape in a more sustainable direction.
