Hardly a day goes by without the news media commenting on rising energy prices and global warming. The science underlying the cause of global warming was effectively settled by the United Nation's Intergovernmental Panel on Climate Change report published in February, in which the IPCC concluded:

		Carolyn Pengidore is president/CEO of Comperio Energy.

"A very high confidence (90 percent probability) that the globally averaged net effect of human activities since 1750 has been one of warming [the climate]," and decided that, "warming of the climate system is unequivocal, as is now evident from observations of increases in global average air and ocean temperatures, widespread melting of snow and ice, and rising average sea level."

Not only does energy light, heat and cool our homes and fuel our vehicles, but due to greenhouse gas emissions, unfortunately it also warms the air that we breathe. In response to concerns about the environment and the security of our energy supply, government mandates at the state, federal and global levels are creating new markets for "clean" energy and credits relating to the use of renewable energy and reductions in carbon dioxide and other greenhouse gas emissions.

New Energy Finance, a London-based consulting firm, estimated that North American venture capital and private equity firms invested $3.5 billion in clean energy in 2006. Some market researchers predict the clean energy industry, which had revenues of $55 billion in 2006, could become a $226 billion industry within 10 years.

Emission allowances, which place a value on the right to emit greenhouse gases, and carbon credits reflecting the value of reducing those emissions, are traded largely in Europe today as the result of the Kyoto Protocol. The carbon market is the fastest growing market in the world, growing from near zero to $30 billion in 2006 after just a few years. The research firm Point Carbon predicts it will reach $60 billion in 2007, and the US Council on Foreign Policy predicts carbon dioxide trading will eventually reach $2.5 trillion to $3 trillion.

While the trading of these environmental commodities provides a market signal for pricing of greenhouse gas emissions, renewable energy technology provides a direct solution to actually reducing them. With growing worldwide demand for energy, the question for regional leaders is not just how can we keep energy prices down, but rather, how do we benefit from prices going up?

While the economic impact of federal carbon legislation in the United States will depend on the details yet to be worked out in Congress, it has the potential to transfer hundreds of billions of dollars from emitters of greenhouse gases to environmentally beneficial projects.

The theme of many legislative proposals is similar to what already has been seen in other federal and state and a growing number of regional energy policies, i.e., environmental attributes are monetized to create a revenue stream to stimulate the development of clean energy technologies. In essence, the environmental benefits of technologies such as biodiesel, wind and solar represent a value that can be packaged and sold separately from the energy they produce.

Community leaders around the country are jumping on this trend, not just for its obvious environmental benefits but also for the jobs and economic prosperity it offers to those who can get ahead of the curve and implement progressive programs for economic development.

So how can this trend actually benefit our region? What economic development initiatives should be in place to create jobs in this growing industry? Our regional economic development strategy should include:

Business attraction and collaboration initiatives

Clean energy incubators

Research and demonstration facilities

Educational and work-force initiatives

And access to both public and private sources of funding.

Muskegon, Mich., is home to the state's Alternative and Renewable Energy Center, a facility where researchers and businesses can develop alternative energy technologies. Its focus is to help startup energy technology companies get their businesses off the ground through its alternative energy business incubator. Grand Valley State University is a partner in the endeavor, providing a cutting edge resource for alternative energy education. A 32-acre "SmartZone" surrounds the facility, aimed at attracting high-tech businesses to the region.

The Energy and Environmental Technology Applications Center at the University of Albany, N.Y., has created a "test farm" where new energy and environmental technologies can be tested, their commercial application can be accelerated and businesses can be launched from this base. The Clean Energy Incubator at the University of Texas in Austin is a similar venture, supported by the Texas State Energy Conservation Office.

In the Pacific Northwest, universities, governments and more than 300 energy companies have joined forces to create a regional economic development initiative. Their mission is to create a global hub for emerging power technologies. Want more examples? Look at the Central State University program in Ohio; the CleanStart program in Sacramento, Calif.; the Environmental Business Cluster in San Jose, Calif.; and the EcoComplex at New Jersey's Rutgers University.

Of course, all this takes money, right? Well, the states are supporting it with legislation and economic development programs aimed at providing public funding. But that's just a part of the story. Community leaders also are actively courting private sector investors.

The Clean Energy Venture Network boasts more than 8,000 investors, 6,000 companies and 3,500 professional services firms that specialize in clean tech globally. Its affiliate members have more than $3 trillion in assets under management. Landing one of their venture forums in the city could help bring visibility to investment opportunities in the region. The National Renewable Energy Technology Laboratory sponsors a similar program.

If we can't get either of these groups to come to Pittsburgh, how about doing it ourselves? The environmentally conscious and entrepreneurial minded city of Austin, Texas, has spearheaded its own Clean Energy Venture Summit sponsored by the local utility, Austin Energy, and its Clean Energy Incubator.

So, want more jobs in the Pittsburgh region? Look to the clean energy business. Global warming will result in entire new industries, creating new jobs in research, manufacturing, construction, technology and financial and professional services. It's time to get on board this fast-moving train. We not only have to support the Governor's Energy Independence Strategy, which provides rules and economic incentives to help finance clean energy projects, but also to step up our efforts locally to become a leader in this field.