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We propose that the old adage "think globally, act locally," inspired by Friends of the Earth founder David Brower in 1969, be re-coined to "think globally, invest locally." In today's state-based regulatory regimes for clean energy, energy efficiency and climate change, there are a number of investment opportunities for everyday investors like you and me, from the risk averse to the risk taker.

Here in Connecticut, we are among the nation's leaders in confronting climate change through our community activism and engagement (as evidenced by de Tocqueville in Democracy in America over one hundred and fifty years ago), and also our progressive public policies in support of clean energy, energy efficiency, and solutions to climate change. If we were to look at how these public policies are creating substantial market-based opportunities, we think you will find opportunities for citizens across Connecticut to achieve a respectable financial return that would improve the performance, reliability, and cost-effectiveness of our energy system and improve the quality of our environment.

In Connecticut, we have several policies that reward clean energy and energy efficiency players such as the incentives from the Connecticut Clean Energy Fund and the Connecticut Energy Efficiency Fund or the value of monetizing renewable energy credits as a result of the renewable portfolio standards. We also have the prospect of revenues from the sale of carbon dioxide allowances underneath a regional cap and trade program. If one were to look at the value that these public policy-enabled incentives and securities have created, from the $120 million of clean energy ($30 million per year) and energy efficiency ($90 million per year) incentives, between $50-$150 million in estimated renewable energy credit value from the renewable portfolio standards, and possibly another $20 million in revenue from the sale of allowances of carbon dioxide emissions, then one would see that over a quarter-of-a-billion dollars a year is being invested in Connecticut to benefit our economy, our energy system, and the environment through clean energy, energy efficiency and solutions to climate change.

In 2005, all of the chatter around climate change involved the Pacala and Socolow stabilization wedges. Then in 2006, all of our attentions turned to the Stern Review on the economics of climate change. And then there was 2007, the revelation that is the McKinsey curve that depicts an array of greenhouse gas abatement measures and the marginal costs of implementing those measures. This is where realizing the opportunity to think globally, invest locally resides. Imagine if every state, community, business, or household for that matter could put together its own "McKinsey-like" curve that would include clean energy and energy efficiency supply curves, costs, and the beneficial impact of state and federal policies, then we could really see the opportunity for people, planet, profit investment returns! This information would provide us with the necessary insights to make financially rational investment decisions as individual homeowners, businesses and investors. Maybe, just maybe, we could realize some significant people, planet, profit returns by investing locally in clean energy, energy efficiency and solutions to climate change.

Where would we get the capital to finance these local projects and solutions?

In February of 2008, the Investor Network on Climate Risk, a consortium of state pension funds and other institutional investors, agreed to collectively deploy an additional $10 billion in clean technology over the next two years. The fifty institutional investors that committed to this climate change action plan managed nearly two trillion dollars in assets. This means that a quarter-of-one percent of the assets under management will be deployed to support clean technology underneath this commitment. What if on behalf of the 160,000 pension plan participants here in the state, we invested that quarter-of-one-percent of the $26 billion of assets under management in clean energy, energy efficiency, and climate change solutions right here in Connecticut. How would this financial investment in our state benefit state employees and pension fund holders, the economy, energy system and environment of Connecticut?

If we were to invest one-percent of assets under management from our state pension funds in energy efficiency, clean energy and solutions to climate change in the businesses, institutions, and homes within our communities, then this action alone would bring in another quarter-of-a-billion dollars of local capital that would keep the financial, economic, energy system, and environmental returns at home right here in the communities of Connecticut!

We all know that the news about climate change is not good. However, rather than wallow in the misery of a seemingly inevitable future, we all need to take up the challenge and do our part to think globally, invest locally in clean energy, energy efficiency, and solutions to climate change in our communities.