The incredible economic progress of the last 150 years was made possible in part through the availability of cheap energy, energy deemed to be without significant global environmental consequences. Had we been able to read the fine print on fossil fuel, we would have seen the warning: "may cause climate change." Now the climate crisis is a full-blown threat, but it's also a great economic opportunity. It's a once-in-a-generation chance to innovate, to reinvent, to get creative, to rise to the occasion. From corner cafes to great industrial enterprises, businesses are striving to meet the challenge and take advantage of the opportunity to innovate and be more competitive. Those who succeed in creating businesses that help solve the climate crisis and create the model for others will be the next great generation of business leaders.

A few companies are acting because access to critical global markets will depend on their compliance with existing international agreements. But many companies now see the threat as so significant that they are asking for strong leadership to enact legislation that will significantly reduce our global warming pollution. A good example is the establishment of US Climate Action Partnership (US CAP), an organization of major consumer product companies, utilities, oil companies, chemical companies, auto manufacturers and others, who are calling for effective action on the climate crisis to achieve significant global benefits, including 60-80% reductions from current US levels by 2050. Many of these companies see the enormous opportunities to participate in the world's transformation to a more climate-friendly economy. And this kind of work engages every facet of our global economy, from the mad geniuses to the diligent engineers to the construction worker. It will employ millions of people for decades.

NEW INVESTMENT IN GREEN TECHNOLOGIES

A June 2007 report from the United Nations Environment Programme (UNEP) says that investment capital flowing into renewable energy climbed 25% in a single year, from $80 billion in 2005 to a record $100 billion in 2006 and shows no sign of abating. While renewable sources today produce about 2% of the world's energy, they now account for about 18% of world investment in power generation. Strongest growth of all worldwide has been in venture capital and private equity investment, totaling $7.1 billion in 2006, up 163% from 2005. Investment via public markets increased 140% to $10.3 billion.

The technology being developed is exciting, even revolutionary. Entire university departments are shifting their teaching and research in traditional subjects towards emphasis on energy efficiency, alternative energy, advanced combustion, energy control systems, biological methods for energy production, and the development of new materials for use in new, clean solutions, and economic models for global carbon reduction. Garage and basement workshops, following in the footsteps of HP and Google, are running on entrepreneurial overdrive. Companies taking advantage of this include solar power systems manufacturers and installers, windpower developers, biofuel production companies, a new electric car company redefining the limits of car performance, and many other companies large and small.

LONG-ESTABLISHED COMPANIES REINVESTING FOR THE CLIMATE

Although many of the consumer products and technology companies being established to help solve the climate crisis will be brand new, climate-focused enterprises, many long-time, standard US and multinational brands are also using innovation to make their products and operations climate-friendly. Many of these companies have joined the US Environmental Protection Agency Climate Leaders Program, a partnership with combined revenues of more than $1 trillion.

Among the many companies taking the lead on reducing global warming impact are well-known corporations like DuPont, SC Johnson (maker of Pledge and Windex), and Intel. These companies have set significant double digit percentage goals for reducing greenhouse gases and are on their way to meet or exceed them. In addition, established companies like General Electric are rolling out brands and campaigns specifically related to climate-friendly products and services. In GE's case, its sales of the Ecomagination line are growing at 12% a year compared to 9% for the company overall. And its windpower sales in the US and abroad have rocketed from $ 200 million in 2002 to near $4 billion for 2006.

OPPORTUNITIES IN EMERGING ECONOMIES

One of the potentially big economic opportunities for climate-friendly companies is emerging markets in China, India, and other developing countries. As these economies ramp up, they are installing massive new energy and transportation infrastructure. China's growing electricity consumption requires installing capacity equal to more than one big coal power plant per week. Companies that can meet these needs and reduce global warming gases at the same time will be in the green for decades. Companies that ignore the new carbon dynamics risk obsolescence. They also risk losing out on the next generation of talent to employers that accept the enormous risk and opportunities associated with climate change.

THE BIG PICTURE

The overall opportunities for companies are enormous and there is still plenty of opportunity, in business big and small. "Every businessperson should survey their customers to see if they care about the environment," says Ray Anderson of the green carpet company Interface. "They might be amazed at the opportunity they are missing."

The US Climate Action Partnership includes 23 of the world's largest corporations and non-profit organizations. Its purpose is to urge policy makers to enact a framework for mandatory reductions of greenhouse gas emissions from major emitting sectors. Members include:

    Alcan, Inc. • Alcoa • American International Group, Inc. • Boston Scientific Corporation • BP America, Inc. • Chrysler Group • ConocoPhillips • Deere & Company • The Dow Chemical Company • Duke Energy • DuPont • Ford Motor Company • FPL Group, Inc. • General Electric • General Motors Corp. • Johnson & Johnson • Marsh, Inc. • PepsiCo • PG&E Corporation • PNM Resources • Shell • Siemens Corporation • Environmental Defense • National Wildlife Federation • Natural Resources Defense Council • The Nature Conservancy • Pew Center on Global Climate Change • World Resources Institute