When breaking with Britain and conceptualizing independence, America’s founders understood that the concentration of economic and political power in the hands of the few was a threat to “life, liberty and the pursuit of happiness.” Since then, each generation has faced a unique set of challenges and opposing forces that present an imperative to safeguard these inalienable rights and intrinsic needs, including economic security, reliable sources of energy, clean air and water, and the realistic hope that our children will be able to create lives that are as good or better than our own.
The COVID-19 pandemic, along with rising geopolitical conflicts, has revealed underlying threats, including a globalized supply chain focused on profits at the expense of resilience and American jobs. Additionally, the increasing concentration of power, whether political or market-based, poses a heightened danger, manifesting within industries as monopolies or oligopolies.
While the U.S. is the world’s largest oil producer, we are still dependent upon the global market, so we are as subject to extreme price fluctuations and supply disruptions as other countries. American-based oil companies are transnational corporations that have a fiduciary responsibility to maximize value for their international shareholders — a goal that is not necessarily aligned with the interests of 332 million Americans.
In 2020, fossil fuels represented 79% of U.S. energy consumption. This level of concentration in an investment portfolio, a company’s customer base or military assets would be considered excessively risky and even irresponsible. That’s why a diversified portfolio of assets serves as the foundational basis for some of the most sophisticated and successful investment, business and military strategies.
Additionally, particulate matter in the air caused by the burning of fossil fuels is destroying our health. According to the World Health Organization, more than 90% of children breathe toxic air every day. This pollution is causing long-term environmental damage by driving climate change, a major threat to health and well-being. And climate change poses a major threat to our economy, as well, as the insurance industry knows. In fact, many insurance companies are either dramatically increasing the cost of property insurance premiums or exiting high-risk markets altogether. Lloyd’s of London’s CEO John Neal recently remarked that “You’ll never hear an insurer saying ‘I don’t believe in climate change.’”
What to do?
Unlike oil and gas, energy from the sun and wind is unlimited, free and renewable — they cannot be monopolized or weaponized.
Ongoing technological innovation has made harnessing solar and wind energy cost-competitive, scalable and a driver of economic development and domestic job creation.
The clean-energy industry added over 3 million jobs across the nation last year, with New Jersey being one of the five states recording job growth in the sector of more than 6%. New Jersey ranks 22nd in the country in clean-energy jobs, with a workforce of 56,277.
The majority of those jobs are in three segments: energy efficiency (36,322), renewable energy (11,884) and clean vehicles (5,370).
In New Jersey, a clean energy standards bill and legislation to modernize and upgrade the grid are in various stages of passage and should be prioritized. The clean energy standards bill would codify several of Gov. Phil Murphy’s clean energy targets: 100% clean electricity by 2035, 11 gigawatts of offshore wind power by 2040 and 50% economywide greenhouse gas emissions reduction by 2030. The governor’s administration is looking to make the most of recent federal programs passed during President Joe Biden’s tenure.
Federal programs like the Inflation Reduction Act, the Chips and Science Act, and the Infrastructure Investment and Jobs Act (also known as the Bipartisan Infrastructure Law) are already driving private investment back into the U.S., creating more resilient supply chains that are comprised of companies and workers from the United States or friendly partner nations. This is good for the American economy, good for the American worker.
Creating a more diverse portfolio of domestically generated and consumed renewables strengthens our national security by making us more resilient and self-reliant in the event of aggressive acts from hostile nations. Since carbon fuels are part of a global market with a history of price and supply volatility and vulnerability to geopolitical upheaval, sourcing more of our energy from American clean energy will enhance energy security, price stability and supply reliability.
In light of the increased political divisiveness at home and abroad, this issue cannot remain in flux. We must pull together as a country to strengthen our energy and economic security by speeding up the transition to a more independent, domestically produced clean energy economy.
Rebecca Lubot is founder and CEO of Lubot Strategies and a visiting associate at the Eagleton Institute of Politics at Rutgers University. Richard Lawton is executive director of the New Jersey Sustainable Business Council, a network of companies working to advance market and policy solutions for a more just and sustainable economy.
