Chinese Green Subsidies: When Lifting All Boats Becomes Bailing Them Out
Doug Young Bottom line: Strong response to Tesla’s latest EV in China and a major new solar plant plan from SolarReserve reflect Beijing’s strong promotion of new energy, which is also creating big waste by attracting unqualified companies to the sector. A series of new reports is showing how Beijing’s strong support for new energy technologies is benefiting both domestic and foreign companies, as China tries to become a global leader in this emerging area. But the reports also spotlight the dangers that come with such aggressive support, which often leads to abuse of subsidies and other...
Green swan, Black swan: No matter as long as it reduces stranded spending
by Prashant Vaze, The Climate bonds Initiative
In January, authors from several institutions under the aegis of BiS, published The Green Swan Central banking and financial stability in the age of climate change setting out their take on the epistemological foundations for, and obstacles against, central banks acting to mitigate climate change risk.
The book’s early chapters provide a cogent and up-to-date analysis of climate change’s profound and irreversible impacts on ecosystems and society. The authors are critical of overly simplistic solutions such as relying on just carbon taxes. They also recognize the all-too-evident deficits in global policy to respond to the threat.
In short, they accept the need for central banks to act.
The Two Arguments
The paper makes two powerful arguments setting out the challenges central banks face using their usual mode of working.
Firstly, climate change’s impact on financial systems is an unknowable unknown – a...
Is The Big Win For The Liberals In Canada Also A Big Win For...
Jim Lane Liberals sweep to victory in Canada; Trudeau to become Prime Minister, pledging sharp increases in infrastructure investment and a renewed focus on clean technology. In Canada, the Liberal party, under the leadership of 43-year old Justin Trudeau, swept to victory in the Canadian federal elections. As of 6am Eastern time, the Liberals have won 184 seats 14 seats more than needed to form a majority government. Prime Minister Stephen Harper’s Conservative Party won in 99 ridings, a loss of 60 seats, while the New Democratic Party has reeled in 44 seats, a...
A 10-Minute Guide to Obama’s New Energy Policy
Jim Lane Stopwatch photo via BigStock A major push from Obama on energy. From DOE: “Liquid fuels demand can be sufficiently reduced so that biomass can meet all liquid fuel needs.” What’s up? What is an Energy Security Trust, anyway? The Digest’s 10-Minute Guide tells all. In an address at the Argonne National Laboratories on Friday, President Obama said: “You see, after years of talking about it, we’re finally poised to take control of our energy future. We produce more oil than we have in 15 years. ...
What the ARRA Means for Clean Energy: One State’s Example
Last week, several branches of the Colorado state government organized a symposium on "How Colorado Electric/Gas Utilities and Their Customers Can Benefit from the American Recovery and Reinvestment Act (ARRA)." I attended, with an ear to how the likely implementation would affect Clean Energy Stocks. Overall, Colorado seems to be taking a very organized approach to a monumental task. According to Colorado Public Utilities Commission (PUC) Chairman Ron Binz, who officiated at the conference, they intend to organize proposals into an overall thematic plan for spending stimulus money. In addition, they are working to eliminate barriers to regulated utilities...
The Environment Is On The Ballot. Vote November 6th
AltEnergyStocks.com first endorsed a presidential candidate in 2008. We endorsed Barack Obama based on his more pro-environmental, pro-alternative energy stance compared to his opponent, John McCain. Choosing between John McCain and Barack Obama took some research, since both candidates struck a somewhat pro-environment tone. Our choice rested on the fact that Obama seemed to have a deeper commitment to environmental causes. Our 2012 endorsement of Obama over Romney was also based on a comparison of their proposed policies.
Fast-forward to 2016, and the decision between the candidates was no longer one that required much analysis. The choice could not have...
President-Elect Trump: A Gift?
by John Fullerton Imagine if you can, Donald Trump has arrived as a gift, to illuminate for us the American “shadow” at this pivotal moment in history. The Swiss Psychiatrist C.G. Jung refers to “the shadow” as the dark side of one’s self. The shadow, Jung wrote in 1963, “is that hidden, repressed, for the most part inferior and guilt-laden” aspect of our personality hiding out in the unconscious. Failure to recognize our shadow leaves us exposed to the destructive possession by our disowned shadow. Are we prepared to see the message of the shadow, illuminating our ongoing...
New Tariffs Likely To Raise US Solar Prices
Jennifer Runyon The US Department of Commerce announced preliminary findings in the new trade case against Chinese and Taiwanese PV products. On Friday evening the U.S. Department of Commerce (DOC) announced its preliminary findings in the antidumping duty (AD) investigations of imports of some crystalline silicon PV products from China and Taiwan. Most solar products entering the U.S. market from China and Taiwan will now face import duties. According to a fact sheet released by the DOC, the AD law “provides U.S. businesses and workers with a transparent and internationally accepted mechanism to seek relief...
Renewable Fuel Producers Score A Win
Despite Trump’s vow to roll back all measures endorsed by Obama, his Environmental Protection Agency head Scott Pruitt is backing off plans to scuttle the U.S. biofuel policy. The Trump administration had planned to change regulatory standards to reduce the amount of renewable fuel that must be blended with conventional fossil fuel for gasoline and diesel supplies. In the third week in October 2017, Pruitt sent a letter to Congressional leadership indicating the renewable fuel volume mandates for 2018 would remain unchanged.
Most analysts saw the about face as a win for ethanol and renewable diesel producers such as Green Plains (GPRE: Nasdaq), FutureFuel...
The Farm Bill: 5-Minute Guide to the Energy Title
Jim Lane Only 5 min BigStock Photo What’s in that Durn-tootin’ US Farm Bill, anyhow? For the harried taxpayer, some relief. For energy security and rural economic development, targeted investments that now head to the legislative floor. Here are the need-to-knows. In Washington, the House and Senate Agricultural committees have now passed their respective versions of the proposed 2013 farm bill, which would take effect for fiscal 2014 through fiscal 2018. Both bills have energy titles meaning that, should they find passage, as expected this summer,...
Clean Energy Finance Experts United Against Trump
by Tom Konrad, Ph.D., CFA This website, AltEnergyStocks.com, endorsed Barack Obama for President in 2008 and 2012. In those two elections, we based our endorsements on a point-by-point analysis each candidates' energy policies, favoring the candidate who expressed the strongest support for policies to transition our economy away from its dependence on fossil fuels. This year, the comparison is so stark a point-by-point comparison hardly seems worth the exercise. Here are a few quotes from the candidates' websites that drive the difference home: On Climate Change Trump: "I think it's ridiculous, we've...
How New England Can Eliminate Oil Use For Single Family Homes for Less Than...
Chris Williams We can use simple, effective, and proven policies that have been used to supercharge the New England solar PV industry to incentivize renewable thermal technologies and eliminate oil use for single family homes. Here's the best part, the policies will be cheaper than solar PV, they will create more local jobs per kW installed and displace more expensive fuel. At Renewable Energy Vermont 2012, I delivered a presentation on how a production-based incentive for renewable thermal technologies, like the $29/MWh incentive in New Hampshire, would be cheaper than the current solar PV incentive in Vermont and...
What A Portfolio Approach To Climate Policy Means for Your Stock Portfolio
Portfolio theory can lend insights into which carbon abatement strategies policymakers should pursue. If policymakers listen, what will it mean for green investors? Tom Konrad, Ph.D., CFA Good Info, Not Enough Analysis I've now read most of my review copy of Investment Opportunities for a Low Carbon World. The quality of the information is generally excellent, as Charles has described in his reviews of the Wind and Solar and Efficiency and Geothermal chapters. As a resource on the state of Cleantech industries, it's generally excellent. As an investing resource, however, it leaves something to be desired. Each chapter is written...
Report Alleges EPA Tests Skewed Against Ethanol By Oil Industry Influence
by Jim Lane
In Washington, researchers for a report published by the Urban Air Initiative contend that “technical data that shows the nation has been exposed to decades of flawed test fuels and flawed driving tests, which in turn means flawed emissions results and mileage claims”. The complete Beyond a Reasonable Doubt series from UAI is available here.
Further, EPA emails obtained under the Freedom of Information Act reveal that, according to a report from Boyden Grey & Associates, the Agency appears to have directly solicited financial contributions and technical input, “especially on the fuel matrix,” from an oil industry controlled research organization.
Of the...
Net Metering Is the Solar Industry’s Junk Food
Shoppers who bring reusable bags to the grocery store buy more junk food. This example is part of a growing body of behavioral psychology research showing that when we feel good about ourselves for doing one thing right, we give ourselves permission to be careless in other areas. The solar installation industry seems to be falling into the "reusable shopping bag" trap. Solar itself is the reusable shopping bag. The junk food is net metering. Net metering is a simple, intuitive way to pay for solar generation at retail rates. But it puts solar companies on...
A Portfolio Risk Wall Street Ignores at Its Peril
Garvin Jabusch At Green Alpha, we believe in investing in the scientifically objective world, and not an ideologically skewed version of it, so I’m often amazed at the attitudes and behavior of many of our colleagues in the financial services industry. For a group that’s supposed to be practicing objectively quantified decision making, finance-types can be remarkably motivated by ideology. Especially where a particular ideology is being promoted by the largest and richest industry in the history of civilization, fossil-fuels, whose representatives will stop at nothing to convince us that their product is safe, causes no warming, and will...
