It is sometimes easy for those within the clean tech sector to look at the latest kinetic powered gadget, the billions of dollars flowing into carbon capture, the revitalisation of rail and sail power, and the emergence of affordable solar power, and forget quite how big the challenge is that they still face.

Nowhere has the scale of this challenge been more clearly illustrated this week than in the reaction to the government's new renewable energy strategy.

To read most of the headlines you'd think that the whole affair was cooked up with the sole intention of driving up energy bills.

These headlines were supported by a raft of "experts" wailing about fuel poverty, the impact on the countryside of thousands of wind turbines and the strategy's £6bn a year price tag. Even the CBI - a vocal supporter of attempts to tackle climate change on most occasions - put the boot in, arguing that such a rapid increase in renewables capacity would not prove "cost effective".

The renewables industry and environmentalists did their best to kick back against this chorus of disapproval, praising the government to the heavens for finally developing a comprehensive strategy that combines the correct level of incentives with genuine commitments to remove the technical and planning obstacles blocking so many projects.

But sadly the media had decided on their angle and we were going to hear about little besides higher fuel bills, like it or not.

Never mind, that all the reports claiming that electricity bills would rise by up to 13 per cent and gas bills would climb by up to 37 per cent were based on the government's "worst case scenario". Never mind, that the projected increases in bills won't come on line until 2015. Never mind, that these calculations were based on the absurdly optimistic assumption that oil will cost $70 a barrel in 2020 and that as such the actual increases are likely to be far, far lower. And never mind, that in return for these higher bills the increase in renewable energy investment will create 160,000 jobs, bolster UK competitiveness internationally, and, most importantly, kick start the transition to a low carbon economy.

The problem for the government is that if it thinks these protests are loud now it ain't heard nothing yet.

Virtually every policy measure designed for driving the transition to a low carbon economy is governed by the principle of price signals. Whether its green taxes or plans to extend the EU's cap-and-trade scheme the end goal is to make carbon intensive activities more expensive in order to discourage people from undertaking them. This means that energy bills are going to get a lot higher, not as some unfortunate side effect of these policies but as the intended end product.

Businesses need to be aware that it is not just the renewables strategy that will drive up energy prices. The Carbon Reduction Commitment, changes to the European Emission Trading Scheme, the continued increases in the Climate Change Levy, the need for energy companies to pay for carbon capture systems and the natural effect of dwindling fossil fuel supplies are all going to contribute to higher prices.

The issue for the government is how to make the case for such measures in the face of protests that will only grow more intense. To shrug its shoulders and admit it is trying to raise bills on carbon intensive fuels at a time when people are struggling to make ends meet will only appear callous and will undoubtedly lose it yet more votes.

Instead the government needs to try and find the positives, while doing as much as possible to ease the transition to lower carbon technologies. The CBI is right in its contention that energy efficiency measures are more cost effective than renewables as a means of initially cutting emissions - a view echoed this week by one Tony Blair - and as such the government must support the renewables strategy with a hugely ambitious efficiency programme. It also needs to make sure that measures are in place to insulate the least well off against rising energy prices and provide smaller businesses with the help they require.

But most of all it needs to be brave.

The government's thinking on climate change is arguably well behind where it needs to be, but it is still ahead of much of the public and many businesses. In this light, it must resist the temptation to water down policies that contribute to higher energy bills and it needs to keep making the point that acting now is more cost effective in the long run. It also needs to make an example of those businesses that have understood the reality of both climate change and higher energy bills and are now providing evidence that it makes great business sense to identify means of cutting energy use sooner rather than later.

If Gordon Brown wants guidance on how all this can be achieved he need look no further than California, which this week unveiled a hugely ambitious strategy for cutting carbon emissions 30 per cent by 2020.

Amidst all the praise that routinely heads California's way it is easy to ignore the fact that this programme (which far outstrips much of what is on offer in Europe) has faced concerted opposition from both the federal government and many less enlightened industry groups.

The reaction of Governor Schwarzenegger has been an unwavering commitment to press on with reforms that he regards as right, necessary and economically beneficial. Instead of trying to triangulate his position and appease the doubters he has simply continued clearly and simply make his case.

The result is that not only is the state now the world's premier clean tech hub, but a man who was elected amidst predictions that he would prove little more than one a term joke has emerged as one of the most respected and popular figures in global politics.

Schwarzenegger provides ample proof, as if it were needed, that support for green measures can be mustered if the case is made clearly and proposals are backed by strong, unwavering leadership.

Sadly, as we've all learned in the past year, these are not amongst the prime minister's strongest suits.

Right, I'm off to try and wangle me a test drive in one of those all electric Range Rovers.

Have a good weekend,

James