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In some ways, corporations such as GE are pulling U.S. policy into greener arenas despite the Federal Government's recalcitrance. For instance, Senate proposals to cap CO2 emissions--opposed by congressional Republicans and President Bush--failed to make it into the energy bill. The Senate bill does require utilities to generate 10% of electricity from renewable fuels like wind or solar by 2020, but Bush wants more emphasis on tax breaks for oil and gas production. Immelt is one of a growing number of chief executives, including the heads of major utilities, who think carbon caps are both inevitable and a feasible response to global warming--a condition that nearly every scientist in the world not working for the White House believes is occurring. The CEO of Duke Energy, for one, has called for an economy-wide carbon tax. Asked if he supports Kyoto, Immelt replied, "I'm not going to advocate one way or the other," although setting CO2 caps would stimulate the market for Immelt's cleaner-burning--and pricier--turbines.
Whatever Washington's agenda, GE sees eco-friendly products as a growth business, especially overseas. In the past three years, GE's wind business, snapped up from Enron for $358 million, has grown into a $2 billion enterprise, with sales up 300%. GE has been rolling out a new generation of supersized turbines for offshore wind farms, the latest one off the coast of Ireland, and announced its third contract to supply smaller windmills to mainland China--where energy demand is soaring and the government aims to spend $85 billion on pollution controls, especially in smog-choked cities like Beijing, site of the 2008 Olympics. Immelt also intends to capitalize on coal-gasification technology purchased last year from Chevron, allowing GE to sell coal-fired power plants that spew fewer greenhouse gases. (GE is in discussions with coal-rich China on various "clean coal" initiatives too). Other eco-ventures include a hybrid locomotive, due in 2007, fuel cells, solar panels, energy-efficient water desalination systems--and, of course, a greener lightbulb. All told, Immelt wants company operations to be a giant showroom for his high-tech green products. "There's this mumbo jumbo that you can't do this and be competitive," he says. "What we've tried to do is broaden our perspective about what winning is all about."