Today we have different incentives for different technologies -- from nuclear power, to clean coal, to wind and solar energy. What we need to do is consolidate them into a single, expanded program.
We must all recognize that in the long run, new technologies are the key to addressing climate change. But in the short run, they can be more expensive. And that is why I believe part of any solution means reforming today's complicated mix of incentives to make the commercialization and use of new, lower emission technologies more competitive. Today we have different incentives for different technologies -- from nuclear power, to clean coal, to wind and solar energy. What we need to do is consolidate them into a single, expanded program with the following features.
First, the incentive should be carbon-weighted to make lower emission power sources less expensive relative to higher emissions sources -- and it should take into account our nation's energy security needs.
Second, the incentive should be technology-neutral because the government should not be picking winners and losers in this emerging market.
Third, the incentive should be long-lasting. It should provide a positive and reliable market signal not only for the investment in a technology, but also for the investments in domestic manufacturing capacity and infrastructure that will help lower costs and scale up availability.
Even with strong new incentives, many new technologies face regulatory and political barriers. To pave the way for a new generation of nuclear power plants, we must provide greater certainty on issues from licensing to responsible management of spent fuel. The promise of carbon capture and storage depends on new pipelines and liability rules. Large-scale renewable energy installations are most likely to be built in sparsely populated areas -- which will require advanced, interstate transmission systems to deliver this power to major population centers. If we're serious about confronting climate change, then we have to be serious about addressing these obstacles.
If we fully implement our new strong laws, adhere to the principles that I've outlined, and adopt appropriate incentives, we will put America on an ambitious new track for greenhouse gas reductions. The growth in emissions will slow over the next decade, stop by 2025, and begin to reverse thereafter, so long as technology continues to advance.