January 18, 2006

Governor Arnold Schwarzenegger
State Capitol Building
Sacramento, CA 95814

Re: Venture Capitalists and Investors Support California Global Warming Policy

Dear Governor Schwarzenegger:

As leaders in the venture capital and investment community we applaud the state's aggressive, yet achievable, greenhouse gas reduction targets. We urge California to take the next step by making these targets enforceable limits on global warming pollution, in order to encourage innovation, secure the state's competitiveness in the 21st century global economy, and put us on a path to protecting the Earth's climate.

As venture capitalists, we thrive by supplying capital to the best and most innovative entrepreneurs, who are leaders in technology and business innovations. The entrepreneurs we support keep California competitive in the world market by challenging the established players and standard practices -- and by seeing opportunity, not threat, in a changing world marketplace.

We believe that to continue to encourage and stimulate the entrepreneurial spirit that makes California a world economic leader, the state must set enforceable limits on global warming pollution. California should be the vanguard of the new global market for climate friendly technologies. Our businesses are second to none in developing advanced products when the market conditions reward these investments. An enforceable statewide limit on global warming pollution is the market signal needed to promote innovation and growth in the clean technology, manufacturing, and energy sectors and keep California businesses competitive in a carbon-conscious global marketplace.

As other countries actively invest in new technologies and products, California businesses continue to make long-term capital investments that commit us to ever increasing greenhouse gas emissions while discouraging the development and deployment of competitive new technologies. California's lack of an enforceable policy is compromising the state's competitiveness, resulting in lost opportunity. We are already seeing German, Japanese, and others' innovation and patents in photovoltaics, auto technology, wind and efficient buildings increase dramatically. Every year that passes without an enforceable statewide policy commits us to unacceptable economic and environmental risks.

California has a history of regarding challenge as opportunity, analyzing the facts and encouraging decisive action and deployment of our best minds to the task at hand. We have led the world in invention, and are poised to do it again.

We urge the California government to take swift and strategic action to reduce global warming pollution, encourage innovation in the state's businesses, and promote California leadership by setting enforceable limits on the state's global warming pollution.

Sincerely,

SAN FRANCISCO
111 Sutter Street, 20th fl.
San Francisco, CA 94104
TEL 415 875-6100
FAX 415 875-6161