economics
Biden's green energy policies are expected to save lives and grow jobs, reports show
New reports suggest that President Biden's climate policies will save 200,000 lives by reducing pollution and have already added nearly 150,000 clean energy jobs in the U.S.
In short:
- Biden’s Inflation Reduction Act has led to 150,000 new clean energy jobs, with 3.5 million now working in the sector.
- Clean energy jobs grew 4.5% last year, outpacing U.S. employment growth, especially in energy efficiency, renewables, and electric vehicles.
- Trump's campaign promises to end clean energy incentives if elected, aiming to deregulate the energy sector.
Key quote:
"The biggest threats to this unprecedented progress are misguided efforts to repeal or roll back parts of the IRA."
— Bob O'Keefe, executive director of E2.
Why this matters:
Reducing pollution saves lives and improves public health. Clean energy job growth boosts the economy but faces potential reversal if Trump wins, risking pollution increases and economic setbacks in this sector.
Europe struggles with high energy costs and fading industries
European manufacturers are facing a new normal of high energy costs, while global competitors thrive on cheaper power.
In short:
- European industries are struggling to compete due to energy prices that are double those in the U.S., driven by a shift from Russian gas to expensive liquefied natural gas.
- Key sectors like chemicals and steel are declining, with companies closing plants and cutting jobs across the EU.
- Policymakers are warning that without major changes, European industry risks becoming irrelevant, while renewable energy won't bring relief until at least the mid-2030s.
Key quote:
“For the first time since the Cold War, we must genuinely fear for our self-preservation.”
— Mario Draghi, former European Central Bank chief
Why this matters:
Energy prices have long-term effects on health and economy. As Europe pivots from fossil fuels, the transition is hurting industries that supply essential goods like pharmaceuticals and microchips, with ripple effects across global markets. Factories are going dark, layoffs are looming, and policymakers are sounding the alarm. Read more: In the race for clean energy, the US is both a leader and a laggard — here’s how.
US-China trade tensions hit Southeast Asia’s solar industry, impact EU
US tariffs on Southeast Asian solar panel exports may disrupt Chinese-owned solar companies in the region, complicating the EU’s solar expansion efforts.
In short:
- Southeast Asian solar producers face rising US tariffs, which could reduce solar panel exports to the US.
- Chinese solar firms in the region have scaled back operations, affecting the EU’s solar manufacturing ambitions.
- Some manufacturers are shifting production to other Southeast Asian nations not currently facing tariffs, like Indonesia and Laos.
Key quote:
"Southeast Asian solar panels could flood the EU market as they are squeezed out of the US."
— Indra Overland, head of the Norwegian Institute of International Affairs' Center for Energy Research
Why this matters:
US tariffs could undermine the EU's solar industry by increasing competition from Southeast Asia. These shifts may also reshape global solar supply chains, influencing renewable energy access worldwide.
Related: American solar firms request federal action against Asian competitors
Reimagining energy: The rise of free solar power
A solar revolution is underway, with experts predicting that by 2030, solar power could be effectively free during daylight hours in many regions.
In short:
- Solar energy capacity saw an 80% increase in 2023, now providing nearly 6% of global electricity, with expectations to become the dominant source by the 2030s.
- The cost of solar panels has dropped dramatically, making solar the cheapest new electricity source for 95% of the world.
- The future may bring industries that adjust operations based on solar availability, with a growing focus on energy storage and transmission.
Key quote:
“The next tenfold increase will be equivalent to multiplying the world’s entire fleet of nuclear reactors by eight in less than the time it typically takes to build just a single one of them.”
— The Economist
Why this matters:
With fewer fossil fuels being burned, we could see a dramatic drop in pollution-related illnesses, cleaner air, and a significant cut in carbon emissions. The challenge now is to figure out how to harness this potential. Read more: Solving the climate crisis requires more than switching to renewables—everyone needs equal access.
Canada imposes new tariffs on Chinese-made electric vehicles
Canada is enacting a 100% tariff on Chinese-made electric vehicles, mirroring U.S. actions taken due to China's alleged market-distorting subsidies.
In short:
- Canada announced the tariffs after discussions with U.S. national security advisor Jake Sullivan.
- Canada will also impose tariffs on Chinese steel and aluminum and may consider more tariffs on other goods.
- China condemned the tariffs as protectionist, warning of potential retaliatory actions.
Key quote:
“Actors like China have chosen to give themselves an unfair advantage in the global marketplace.”
— Justin Trudeau, Canadian Prime Minister
Why this matters:
These tariffs could escalate trade tensions between China, Canada and the U.S., impacting global markets and the electric vehicle industry. The dispute highlights ongoing concerns about China's influence on global trade.
Related:
Wyoming hesitates to embrace solar energy despite its potential
Wyoming has the ideal conditions for solar energy, yet its development lags behind due to political and economic ties to fossil fuels.
In short:
- Wyoming receives ample sunlight, but only two utility-scale solar farms currently operate in the state.
- The state's economy and policies are heavily influenced by the coal industry, creating barriers to solar energy adoption.
- Four large solar projects are in development, potentially increasing the state’s solar capacity significantly.
Key quote:
“There is economic development happening at a really large scale in surrounding states that is much reduced here.”
— Scott Kane, solar company co-founder
Why this matters:
Expanding solar energy in Wyoming could diversify its economy, reduce dependency on coal and bring significant environmental and financial benefits to the state.
Related EHN coverage:
Sweden shows how to slash emissions while boosting the economy
Sweden has managed to cut 80% of its emissions since 1990 while doubling its economy, proving that economic growth and climate protection can go hand in hand.
In short:
- Sweden's success comes from early investments in renewable energy, utilizing its natural resources like forests and hydropower.
- The country transitioned away from fossil fuels for heating and electricity, with biofuels now powering 97% of heating.
- Strong government policies, including a high carbon tax, incentivized businesses and citizens to adopt greener practices.
Key quote:
"The biggest lesson is that you need close cooperation between government, private sector, and the local government as well to really develop these system solutions together and take risks, make these big long-term investments."
— Asa Persson, advisor to the Swedish government on climate policy.
Why this matters:
By investing in green tech, enforcing strict environmental regulations and pushing for a circular economy where waste becomes a resource, Sweden is showing the world that you don’t have to choose between a healthy planet and a thriving economy. Read more: Steps to re-invigorate the economy must free us from polluting fossil fuels.
