Climate Change can Drive Retooling by Automakers

(National Wildlife Federation)

A new report shows that an immediate $100 billion "Green Recovery" package focused on investment in new energy infrastructure and technology could bring 60,000 jobs to Michigan and 2 million nationally in two years. That's more good jobs than would come from a comparable investment in drilling or a check to consumers -- and it does more than drilling to address both energy independence and the emissions that cause climate change.

The same green recovery logic applies to transforming the auto industry. That's why Congress should pass some version of the auto loan guarantees in front of it.

Retooling the auto sector to provide the next generation of highly efficient vehicles is one of our best avenues to cut oil use and gas prices while providing a powerful engine of job growth in Michigan and across the nation, and enhancing our competitiveness worldwide.

Auto retooling goes together with new low-carbon fuels and a new mass-transit infrastructure -- both recommended in the "green recovery" plan.

While auto retooling proposals vary (and the details matter), something like the loan package is no bailout. It is a critical near-term investment in making next generation vehicles and components here in the United States. It helps build vehicles at least 25 percent more efficient than today's. It stands to deliver a concrete public benefit -- gas price relief with jobs -- to households across America.

The retooling package was originally intended to speed automaker investment in advanced technologies to meet the significant fuel economy increases passed in the energy bill. At the same time, rapid gas price increases are driving a shift to smaller cars.

Automakers and suppliers need to make an immediate shift to deliver cars consumers want today without sacrificing the technology investments needed to raise fuel economy across the fleet and deliver innovative vehicles consumers want tomorrow.

Far from being an imprudent investment, doing both helps protect the industry's viability, speeds emissions reductions and provides choices to consumers.

But it is also only a downpayment. America's environmental and economic future depends on sustaining a fundamental technological transformation. Even our short-term list is long: We also need urgent attention to speed domestic advanced battery development and consumer incentives to help bring the most advanced vehicles within the budget of ordinary households.

Structured correctly, comprehensive national climate change legislation provides us the best means to drive this transition both in the rapidly growing new energy sector and established core industries like autos. Only a comprehensive policy can provide the robust, ongoing investment to drive technological transition and job growth across the economy.

In Michigan, we have a visceral understanding of the crossroads we're at in the auto industry -- the risk and the opportunity. At the same time, our heritage, quality of life and economy depend on the Great Lakes and protecting our unique natural resources for our children's future. A similar challenge faces the whole country.

Business as usual is not working, but fortunately we have an unparalleled foundation of expertise and innovation from which to succeed, and still have a window in which to do so.

Zoe Lipman heads the National Wildlife Federation's Midwest work on climate change at the Great Lakes regional office in Ann Arbor.