Obama demands action to tackle "a warming planet"

President Obama delivered some broad promises for environmentalists and green businesses in his inauguration speech yesterday, referring to the challenge presented by global warming and explicitly highlighting renewable energy as one of the key components of his administration's economic stimulus package.

In a speech heavy on symbolism, President Obama focused on the hard road ahead for both America and the wider world. He committed to "roll back the spectre of a warming planet," striking a strong contrast with his predecessor, whose adminstration repeatedly quashed reports confirming global warming fears, worked to stop regulators from using existing legislation to combat climate change, and refused to sign up to international agreements to curb carbon emissions.

During his election campaign Obama called for a emissions cap-and-trade system and huge increase in investment in low carbon technologies, and the explicit references to climate change in his inaugural address will be taken as a sign that he intends to make the environment a central plank of his policy agenda.

He also again confirmed that clean technologies, and in particular renewables would play a key role in his imminent economic stimulus package. "We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together," the President said yesterday. "We will harness the sun and the winds and the soil to fuel our cars and run our factories."

Given the traditionally high-level nature of inaugural speeches, there was perhaps unsurprisingly little additional information on his proposed stimulus package, which currently includes $18.5bn for renewable energy and energy efficiency research. The package, which includes massive injections of capital for infrastructure projects, could cost the federal Government between $700bn and $1 trillion.

But his broad message will have pleased environmental groups. While promising to defend America's way of life, he also added: "nor can we consume the world's resources without regard to effect. For the world has changed, and we must change with it."

In addition there was a thinly veiled swipe at the Bush administrations scepticism towards both climate change and broader scientific issues when Obama vowed to "restore science to its rightful place".

With a hefty mandate and a public expecting him to turn around the country's economic problems, all eyes will now be on the new president as the world waits to see how quickly he will pass new legislation, and reverse some of the outgoing administration's environmental measures.

Meanwhile, clean tech firms the world over will be hoping for a new surge of investment today as part of a second "Obama bounce".

Although figures from research house New Energy Finance claim clean tech investment slowed during 2008, investment levels surged 40 per cent in the last quarter of the year following President Obama's election.

A second bounce is expected now Obama has taken office, though much will depend on whether his planned $800bn stimulus package, currently in Congress, receives political backing.

"Obama has run on a platform that we are going to invest in renewables, and has set some very aggressive targets," said Dan Arvizu,of the US National Renewable Energy Lab, on the sidelines of the World Future Energy Summit in Abu Dhabi

Arvizu, who has looked over the details of the package said that approximately $140bn of the $800bn will be invested in clean tech and energy efficicency. "It aims to double the production of alternative energy in the next three years," he added.

Steven Fludder, vice-president of ecomagination, the cleantech division of GE, said he thinks investment capital should begin to revive in 2009. "The refreshing views of the Obama administration and development in China mean that we are really at a tipping point," he said.