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<DIV class=timestamp>October 30, 2006</DIV>
<DIV class=kicker><NYT_KICKER>The Energy Challenge</NYT_KICKER></DIV>
<H1><NYT_HEADLINE type=" " version="1.0">Budgets Falling in Race to Fight Global
Warming </NYT_HEADLINE></H1><NYT_BYLINE type=" " version="1.0"></NYT_BYLINE>
<DIV class=byline>By <A title="More Articles by Andrew C. Revkin"
href="http://topics.nytimes.com/top/reference/timestopics/people/r/andrew_c_revkin/index.html?inline=nyt-per">ANDREW
C. REVKIN</A></DIV><NYT_TEXT></NYT_TEXT>
<DIV id=articleBody>
<P>DENVER — Cheers fit for a revival meeting swept a hotel ballroom as 1,800
entrepreneurs and experts watched a PowerPoint presentation of the most
promising technologies for limiting <A
title="Recent and archival news about global warming."
href="http://topics.nytimes.com/top/news/science/topics/globalwarming/index.html?inline=nyt-classifier">global
warming</A>: solar power, wind, ethanol and other farmed fuels, energy-efficient
buildings and fuel-sipping cars. </P>
<P>“Houston,” Charles F. Kutscher, chairman of the <A
href="http://solar2006.org">Solar 2006 conference</A>, concluded in a twist on
the line from Apollo 13, “we have a solution.”</P>
<P>Hold the applause. For all the enthusiasm about alternatives to coal and oil,
the <A href="http://www.oecd.org/dataoecd/52/25/36760950.pdf">challenge</A> of
limiting emissions of carbon dioxide, which traps heat, will be immense in a
world likely to add 2.5 billion people by midcentury, a host of other experts
say. Moreover, most of those people will live in countries like China and India,
which are just beginning to enjoy an electrified, air-conditioned mobile
society. </P>
<P>The challenge is all the more daunting because research into energy
technologies by both government and industry has not been rising, but rather
falling.</P>
<P>In the <A title="More news and information about United States."
href="http://topics.nytimes.com/top/news/international/countriesandterritories/unitedstates/index.html?inline=nyt-geo">United
States</A>, annual federal spending for all energy research and development —
not just the research aimed at climate-friendly technologies — is less than half
what it was a quarter-century ago. It has sunk to $3 billion a year in the
current budget from an inflation-adjusted peak of $7.7 billion in 1979,
according to several different studies.</P>
<P>Britain, for one, has sounded a loud alarm about the need for prompt action
on the climate issue, including more research. [A report commissioned by the
British government and scheduled to be released today calls for spending to be
doubled worldwide on research into low-carbon technologies; without it, the
report says, coastal flooding and a shortage of drinking water could turn 200
million people into refugees.]</P>
<P>President Bush has sought an increase to $4.2 billion for 2007, but that
would still be a small fraction of what most climate and energy experts say
would be needed.</P>
<P>Federal spending on medical research, by contrast, has nearly quadrupled, to
$28 billion annually, since 1979. Military research has increased 260 percent,
and at more than $75 billion a year is 20 times the amount spent on energy
research.</P>
<P>Internationally, government energy research trends are little different from
those in the United States. <A title="More news and information about Japan."
href="http://topics.nytimes.com/top/news/international/countriesandterritories/japan/index.html?inline=nyt-geo">Japan</A>
is the only economic power that increased research spending in recent decades,
with growth focused on efficiency and solar technology, according to the
International Energy Agency.</P>
<P>In the private sector, studies show that energy companies have a long
tradition of eschewing long-term technology quests because of the lack of
short-term payoffs. </P>
<P>Still, more than four dozen scientists, economists, engineers and
entrepreneurs interviewed by The New York Times said that unless the search for
abundant non-polluting energy sources and systems became far more aggressive,
the world would probably face dangerous warming and international strife as
nations with growing energy demands compete for increasingly inadequate
resources. </P>
<P>Most of these experts also say existing energy alternatives and improvements
in energy efficiency are simply not enough. </P>
<P>“We cannot come close to stabilizing temperatures” unless humans, by the end
of the century, stop adding more CO2 to the atmosphere than it can absorb, said
W. David Montgomery of <A title="Charles River Associates"
href="http://www.nytimes.com/redirect/marketwatch/redirect.ctx?MW=http://custom.marketwatch.com/custom/nyt-com/html-companyprofile.asp&symb=CRAI">Charles
River Associates</A>, a consulting group, “and that will be an economic
impossibility without a major R.& D. investment.”</P>
<P>A sustained push is needed not just to refine, test and deploy known
low-carbon technologies, but also to find “energy technologies that don’t have a
name yet,” said James A. Edmonds, a chief scientist at the Joint Global Change
Research Institute of the <A title="More articles about University of Maryland"
href="http://topics.nytimes.com/top/reference/timestopics/organizations/u/university_of_maryland/index.html?inline=nyt-org">University
of Maryland</A> and the Energy Department.</P>
<P>At the same time, many energy experts and economists agree on another
daunting point: To make any resulting “alternative” energy options the new norm
will require attaching a significant cost to the carbon emissions from coal, oil
and gas. </P>
<P>“A price incentive stirs people to look at a thousand different things,’ ”
said Henry D. Jacoby, a climate and energy expert at the <A
title="More articles about Massachusetts Institute of Technology"
href="http://topics.nytimes.com/top/reference/timestopics/organizations/m/massachusetts_institute_of_technology/index.html?inline=nyt-org">Massachusetts
Institute of Technology</A>. </P>
<P>For now, a carbon cap or tax is opposed by President Bush, most American
lawmakers and many industries. And there are scant signs of consensus on a
long-term successor to the Kyoto Protocol, the first treaty obligating
participating industrial countries to cut warming emissions. (The United States
has not ratified the pact.) </P>
<P>The next round of talks on Kyoto and an underlying voluntary treaty will take
place next month in Nairobi, <A title="More news and information about Kenya."
href="http://topics.nytimes.com/top/news/international/countriesandterritories/kenya/index.html?inline=nyt-geo">Kenya</A>.</P>
<P>Environmental campaigners, focused on promptly establishing binding limits on
emissions of heat-trapping gases, have tended to play down the need for big
investments seeking energy breakthroughs. At the end of “An Inconvenient Truth,”
former Vice President <A title="More articles about Al Gore."
href="http://topics.nytimes.com/top/reference/timestopics/people/g/al_gore/index.html?inline=nyt-per">Al
Gore</A>’s documentary film on climate change, he concluded: “We already know
everything we need to know to effectively address this problem.” </P>
<P>While applauding Mr. Gore’s enthusiasm, many energy experts said this stance
was counterproductive because there was no way, given global growth in energy
demand, that existing technology could avert a doubling or more of atmospheric
concentrations of carbon dioxide in this century. </P>
<P>Mr. Gore has since adjusted his stance, saying existing technology is
sufficient to start on the path to a stable climate.</P>
<P>Other researchers say the chances of success are so low, unless something
breaks the societal impasse, that any technology quest should also include work
on increasing the resilience to climate extremes — through actions like
developing more drought-tolerant crops — as well as last-ditch climate fixes,
like testing ways to block some incoming sunlight to counter warming. </P>
<P>Without big reductions in emissions, the midrange projections of most
scenarios envision a rise of 4 degrees or so in this century, four times the
warming in the last 100 years. That could, among other effects, produce a
disruptive mix of intensified flooding and withering droughts in the world’s
prime agricultural regions.</P>
<P>Sir Nicholas Stern, the chief of Britain’s economic service and author of the
<A href="http://www.sternreview.org.uk">new government report</A> on climate
options, has summarized the cumulative nature of the threat succinctly: “The
sting is in the tail.”</P>
<P><SPAN class=bold>The Carbon Dioxide Problem</SPAN></P>
<P>Many factors intersect to make the prompt addressing of global warming very
difficult, experts say.</P>
<P>A central hurdle is that carbon dioxide accumulates in the atmosphere like
unpaid credit card debt as long as emissions exceed the rate at which the gas is
naturally removed from the atmosphere by the oceans and plants. But the
technologies producing the emissions evolve slowly. </P>
<P>A typical new coal-fired power plant, one of the largest sources of
emissions, is expected to operate for many decades. About one large coal-burning
plant is being commissioned a week, mostly in China.</P>
<P>“We’ve got a $12 trillion capital investment in the world energy economy and
a turnover time of 30 to 40 years,” said John P. Holdren, a physicist and
climate expert at <A title="More articles about Harvard University."
href="http://topics.nytimes.com/top/reference/timestopics/organizations/h/harvard_university/index.html?inline=nyt-org">Harvard
University</A> and president of the American Association for the Advancement of
Science. “If you want it to look different in 30 or 40 years, you’d better start
now.”</P>
<P>Many experts say this means the only way to affordably speed the transition
to low-emissions energy is with advances in technologies at all stages of
maturity.</P>
<P>Examples include:</P>
<P>¶ Substantially improving the efficiency and cost of solar panels;</P>
<P>¶ Conducting full-scale tests of systems for capturing carbon dioxide from
power plants and pumping it underground;</P>
<P>¶ Seeking efficient ways to generate fuels from crops;</P>
<P>¶ Finding new ways to store vast amounts of energy harvested intermittently
from the wind and sun.</P>
<P>Carbon dioxide levels will stabilize only if each generation persists in
developing and deploying alternatives to unfettered fossil-fuel emissions, said
<A href="http://mae.princeton.edu/people/e9/socolow/profile.html">Robert H.
Socolow</A>, a physicist and co-director of a <A
href="http://www.princeton.edu/~cmi">Princeton “carbon mitigation
initiative”</A> created with $20 million from BP and <A title="Ford Motor"
href="http://www.nytimes.com/redirect/marketwatch/redirect.ctx?MW=http://custom.marketwatch.com/custom/nyt-com/html-companyprofile.asp&symb=F">Ford
Motor</A>. </P>
<P>The most immediate gains could come simply by increasing energy efficiency.
If efficiency gains in transportation, buildings, power transmission and other
areas were doubled from the longstanding rate of 1 percent per year to 2
percent, Dr. Holdren wrote in the <A
href="http://mitpressjournals.org/doi/pdfplus/10.1162/itgg.2006.1.2.3">M.I.T.
journal Innovations</A> earlier this year, that could hold the amount of new
nonpolluting energy required by 2100 to the amount derived from fossil fuels in
2000 —a huge challenge, but not impossible. </P>
<P>Another area requiring immediate intensified work, Dr. Holdren and other
experts say, is large-scale demonstration of systems for capturing carbon
dioxide from coal burning before too many old-style plants are built. </P>
<P>All of the components for capturing carbon dioxide and disposing of it
underground are already in use, particularly in oil fields, where pressurized
carbon dioxide is used to drive the last dregs of oil from the ground. </P>
<P>In this area, said <A href="http://www.ucalgary.ca/~keith/">David Keith</A>,
an energy expert at the University of Calgary, “We just need to build the damn
things on a billion-dollar scale.”</P>
<P>In the United States, the biggest effort along these lines is the
285-megawatt <A
href="http://www.fossil.energy.gov/programs/powersystems/futuregen/">Futuregen</A>
power plant planned by the Energy Department, along with private and
international partners, that was announced in 2003 by President Bush and is
scheduled to be built in either Illinois or Texas by 2012. James L. Connaughton,
the chairman of the White House Council on Environmental Quality, said the Bush
administration was making this a high priority. </P>
<P>“We share the view that a significantly more aggressive agenda on carbon
capture and storage and zero-pollution coal is necessary,” he said, adding that
the administration has raised annual spending on storage options “from
essentially zero to over $70 million.” </P>
<P>Europe is pursuing a suite of such plants, including one in China, but also
well behind the necessary pace, several experts said.</P>
<P>Even within the Energy Department, some experts are voicing frustration over
the pace of such programs. “What I don’t like about Futuregen,” said Dr.
Kutscher, an engineer at the <A href="http://www.nrel.gov">National Renewable
Energy Laboratory</A> in Golden, Colo., “is the word ‘future’ in there.” </P>
<P><SPAN class=bold>Beyond a Holding Action</SPAN></P>
<P>No matter what happens in the next decade or so, many experts say, the second
and probably hardest phase of stabilizing the level of carbon dioxide will fall
to the generation of engineers and entrepreneurs now in diapers, and the one
after that. And those innovators will not have much to build on without greatly
increased investment now in basic research. </P>
<P>There is plenty of ferment. Current research ranges from work on algae
strains that can turn sunlight into hydrogen fuel to the inkjet-style printing
of photovoltaic cells — a technique that could greatly cut solar-energy costs if
it worked on a large scale. One company is promoting high-flying kite-like
windmills to harvest the boundless energy in the jet stream. </P>
<P>But all of the small-scale experimentation will never move into the energy
marketplace without a much bigger push not only for research and development,
but for the lesser-known steps known as demonstration and deployment.</P>
<P>In this arena, there is a vital role for government spending, many experts
agree, particularly on “enabling technologies” — innovations that would never be
pursued by private industry because they mainly amount to a public good, not a
potential source of profit, said <A
href="http://people.mcgill.ca/christopher.green/">Christopher Green</A>, an
economist at McGill University.</P>
<P>Examples include refining ways to securely handle radioactive waste from
nuclear reactors; testing repositories for carbon dioxide captured at power
plants; and, perhaps more important, improving the electricity grid so that it
can manage large flows from intermittent sources like windmills and solar
panels.</P>
<P>“Without storage possibilities on a large scale,” Mr. Green said, “solar and
wind will be relegated to niche status.”</P>
<P>While private investors and entrepreneurs are jumping into alternative energy
projects, they cannot be counted on to solve such problems, economists say,
because even the most aggressive venture capitalists want a big payback within
five years. </P>
<P>Many scientists say the only real long-term prospect for significantly
substituting for fossil fuels is a breakthrough in harvesting solar power. This
has been understood since the days of Thomas Edison. In a conversation with
Henry Ford and the tire tycoon Harvey Firestone in 1931, shortly before Edison
died, he said: “I’d put my money on the sun and solar energy. What a source of
power! I hope we don’t have to wait until oil and coal run out before we tackle
that.”</P>
<P>California, following models set in Japan and <A
title="More news and information about Germany."
href="http://topics.nytimes.com/top/news/international/countriesandterritories/germany/index.html?inline=nyt-geo">Germany</A>,
is trying to help solar energy with various incentives.</P>
<P>But such initiatives mainly pull existing technologies into the market,
experts say, and do little to propel private research toward the next big
advances. Even Vinod Khosla, a leading environment-oriented venture capitalist
who invests heavily in ethanol and other alternative energy projects, said in an
interview that he was not ready to back solar power because it did not appear
able to show a profit without subsidies.</P>
<P><SPAN class=bold>The Role of Leadership</SPAN></P>
<P>At the federal level, the Bush administration was criticized by Republican
and Democratic lawmakers at several recent hearings on climate change. </P>
<P>Mr. Connaughton, the lead White House official on the environment, said most
critics are not aware of how much has been done. </P>
<P>“This administration has developed the most sophisticated and carefully
considered <A href="http://www.climatetechnology.gov">strategic plan</A> for
advancing the technologies that are a necessary part of the climate solution,”
he said. He added that the administration must weigh tradeoffs with other
pressing demands like health care. </P>
<P>Since 2001, when Mr. Bush abandoned a campaign pledge to limit carbon dioxide
from power plants, he has said that too little is known about specific dangers
of global warming to justify hard targets or mandatory curbs for the gas.</P>
<P>He has also asserted that any solution will lie less in regulation than in
innovation.</P>
<P>“My answer to the energy question also is an answer to how you deal with the
greenhouse-gas issue, and that is new technologies will change how we live,” he
said in May.</P>
<P>But critics, including some Republican lawmakers, now say that mounting
evidence for risks — including findings that administration officials have tried
to suppress of late — justifies prompt, more aggressive action to pay for or
spur research and speed the movement of climate-friendly energy options into the
marketplace. </P>
<P>Martin I. Hoffert, an emeritus professor of physics at <A
title="More articles about New York University."
href="http://topics.nytimes.com/top/reference/timestopics/organizations/n/new_york_university/index.html?inline=nyt-org">New
York University</A>, said that what was needed was for a leader to articulate
the energy challenge as President <A
title="More articles about John Fitzgerald Kennedy."
href="http://topics.nytimes.com/top/reference/timestopics/people/k/john_fitzgerald_kennedy/index.html?inline=nyt-per">John
F. Kennedy</A> made his case for the mission to the moon. President Kennedy said
they were imperative, “not because they are easy, but because they are
hard.”</P>
<P>In a report on competitiveness and research released last year, the National
Academies, the country’s top science advisory body, urged the government to
substantially expand spending on long-term basic research, particularly on
energy. </P>
<P>The report, titled <A
href="http://www.nap.edu/catalog/11463.html#toc">“Rising Above the Gathering
Storm,”</A> recommended that the Energy Department create a research-financing
body similar to the 48-year-old Defense Advanced Research Projects Agency, or
Darpa, to make grants and attack a variety of energy questions, including
climate change. </P>
<P>Darpa, created after the Soviet Union launched Sputnik in 1957, was set up
outside the sway of Congress to provide advances in areas like weapons,
surveillance and defensive systems. But it also produced technologies like the
Internet and the global positioning system for navigation. </P>
<P>Mr. Connaughton said it would be premature to conclude that a new agency was
needed for energy innovation. </P>
<P>But many experts, from oil-industry officials to ecologists, agree that the
status quo for energy research will not suffice. </P>
<P>The benefits of an intensified energy quest would go far beyond cutting the
risks of dangerous climate change, said Roger H. Bezdek, an economist at
Management Information Systems, a consulting group.</P>
<P>The world economy, he said, is facing two simultaneous energy challenges
beyond global warming: the end of relatively cheap and easy oil, and the
explosive demand for fuel in developing countries. </P>
<P>Advanced research should be diversified like an investment portfolio, he
said. “The big payoff comes from a small number of very large winners,” he said.
“Unfortunately, we cannot pick the winners in advance.”</P>
<P>Ultimately, a big increase in government spending on basic energy research
will happen only if scientists can persuade the public and politicians that it
is an essential hedge against potential calamity.</P>
<P>That may be the biggest hurdle of all, given the unfamiliar nature of the
slowly building problem — the antithesis of epochal events like Pearl Harbor,
Sputnik and 9/11 that triggered sweeping enterprises.</P>
<P>“We’re good at rushing in with white hats,” said Bobi Garrett, associate
director of planning and technology management at the National Renewable Energy
Laboratory. “This is not a problem where you can do
that.”</P></DIV></FONT></DIV></BODY></HTML>