By Mary Anna Mancuso, Miami Herald
Tackling the climate crisis doesn’t have to wait for federal action. Across the country, and especially in Florida, we should shift our attention to the private sector for potential solutions — provided we can figure out ways to reduce the government red tape that hampers innovation.
That came home to me last week when I attended the Resilience 365 Conference at the University of Miami and saw technology pitches from start-ups. There’s plenty of innovation in the climate arena, with many products and solutions aimed specifically at Florida. From using artificial intelligence for ocean clean up to using floating wetlands to improve water quality, or addressing sea level rise with innovative coastal infrastructure, companies are coming up with ways to address the effects of climate change.
The start-ups were looking for funding, of course, but some also mentioned permitting regulations that have been holding them back. Often, such regulations are once-size-fits-all, slowing down private sector solutions because they may be difficult to apply to emerging technology. Regulations such as permitting sometimes require a lengthy process that new companies either can’t afford or that create a barrier to bringing their product to market quickly.
University of Miami professor of economics David Kelly told me that “most regulation harms innovation and finding solutions to solve the climate crisis.”
Certainly, not all regulation is bad. For example, a carbon tax puts a price on carbon emissions by produced by products as a way of reducing environmental impacts. That regulation doesn’t pick winners or losers — it just sets a price on carbon and allows the market to respond.
However, most regulations are not designed to encourage innovation. They’re more geared toward controlling it, with uniform requirements that do more to hinder progress than protect the marketplace. Kelly, who is co-chair of UM’s Sustainable Business Research Cluster, told me that “regulators find it easier to monitor compliance if there are few ways of complying.”
That makes sense from a regulation point of view. For example, if a regulation says all cars must have catalytic converters, any other option, even if it’s better, would probably face quick elimination from the market. That creates little incentive to innovate beyond what’s already approved in the marketplace.
A shift in regulations is needed for the private sector to be able to address climate change with innovative solutions. Government oversight should work as a support system for companies, not slow it down.
During the pandemic, the U.S. created a public-private partnership with the National Institutes of Health to prioritize the development of COVID-19 vaccines. Under Operation Warp Speed, the government could incentivize private companies with $10 billion of funding that had been allocated for vaccine development. In less than a year, vaccines for COVID-19 were brought to market.
The swiftness of the creation of COVID-19 vaccines was a result of private sector innovation — combined with a massive infusion of taxpayer dollars, of course — and shows what is possible when companies are motivated and regulation is removed. Obviously, the pandemic was a highly unusual situation but there are lessons to learn when the power of innovation is unleashed, especially in times of crisis.
I’ve long argued for a similar approach to the climate crisis. This doesn’t necessarily mean government subsidies. It means reducing regulations when appropriate.
“Well-intended regulations, such as permitting and product safety approvals, are designed to prevent environmental harm,” Kelly said. “But in many cases, they may have gone too far. In today’s climate, they’re slowing down our ability to deploy new technologies in the fight against climate change.”
The private sector can be a key driver for climate change solutions. The urgency is real; Florida has a special stake in this because the effects of climate change are being felt across the state, but places like California and Texas are also facing serious climate problems.
We don’t need to wait for sweeping federal legislation to act. We may be able to achieve faster progress on the climate crisis if we reduce superfluous regulations and allow for creative solutions, letting the private sector lead the way.
Mary Anna Mancuso is a member of the Miami Herald Editorial Board. This opinion piece was originally published by the Miami Herald, which is a media partner of The Invading Sea. Banner photo: Solar panels are assembled at a factory (iStock image).
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