Next year will mark the 150th anniversary of the US's first oil well, in Titusville, Pennsylvania. Today, we are working to build a new economic future based on clean, renewable energy. The innovators of Titusville have modern-day counterparts in the entrepreneurs, scientists, investors and working people who are part of a growing movement to build a "green economy". In 1859, one economic player had a notably small role: the government. The oil industry was free to develop as the market dictated. Today we do not have time to depend solely on the market to drive change. Our desire to balance economic growth with protection of our climate, to reduce our dependence on global oil markets and to account for the long-term costs fossil fuels impose on our economy requires action not only from the private sector but from policymakers as well. It should sound strange to hear the chief executive of a global bank calling for government intervention. It is not a position I take lightly. But it is also not unprecedented. The government played a significant role in electrifying the rural US and building our transport infrastructure. Landmark legislation such as the clean air and clean water acts have been environmental and econ-omic successes. And state governments often encourage the development of new industries. Whether or not one accepts the global warming argument - for the record, I do - there are reasons enough to accelerate the market's movement towards renewable energy sources. First is the opportunity for the US to lead what we believe will be one of the fastest-growing industries of the 21st century. Energy security, resource conservation, reduction of pollution and protection of natural habitats are good reasons as well. The private sector has taken steps to address this challenge. In my industry, banks are working to reduce greenhouse gas emissions from their own operations and creating products, such as credit cards and mortgages with "green" features, that enable customers to reduce their carbon footprint. The value of bank-financed eco-friendly real estate development is growing at 50 per cent a year. Investments in renewable energy totalled more than $100bn last year. Governments have joined this work on several fronts. But as the global population grows, economies expand and environmental effects deepen, our partners in public policy need to do more to help create a market environment in which sustainable energy alternatives are economically competitive. First, the private sector needs a stable and predictable regulatory environment with a bias towards clean energy and the green economy. Members of Congress should work out their differences and move to renew and extend the alternative energy and efficiency tax credits that expire at the end of this year. Incentives matter. Some banks, for example, have been looking for financially viable ways to create a large-scale market for residential solar leasing. Giving consumers the option to install energy-saving solar panels through leasing would relieve consumers of the largest obstacle to this technology: the high cost of purchasing the panels. Renewable energy is growing quickly in the US. Wind projects accounted for 30 per cent of all new capacity last year. Solar capacity increased 125 per cent over 2006, while geothermal energy was up 40 per cent. Some day these industries will be self-sustaining. But today they continue to need help to build enough market scale to compete with hydrocarbons. Second, policy leaders need to work across jurisdictions to determine which incentives or regulations are appropriate at state level and which work best at federal level. Third, Congress must be encouraged to create a cap-and-trade framework for carbon emissions. As more countries put cap-and-trade systems in place, carbon trading markets will become central in our efforts to reduce greenhouse gas emissions. It has become clear that there is a strong connection between our willingness to diversify our energy sources and our ability to grow the global economy sustainably. The good news is that today, we have access to financial markets, scientific knowledge, technology and human ingenuity that those first oilmen of Titusville could scarcely imagine. Just as important, we have the motivation to preserve our planet for future generations. The writer is chairman and chief executive of Bank of America Copyright The Financial Times Limited 2008