Environmental experts emphasized the need for an equitable transition to clean energy, acknowledging that communities disproportionately affected by pollution should benefit from the transition. The Inflation Reduction Act has allocated funds for equitable transition, and international cooperation is crucial for supporting countries vulnerable to climate change impacts.
The US Department of the Interior has announced a new five-year leasing schedule for offshore wind energy in the Atlantic, Gulf of Mexico, Pacific, and waters offshore the US territories. The schedule includes up to 12 potential offshore wind energy lease sales through 2028, with four offshore lease sales planned for this year. The move is part of the Biden Administration’s plans to boost offshore wind and other forms of renewable energy to make the grid greener and cut emissions.
The Biden administration has unveiled plans to hold up to a dozen auctions of offshore wind development rights through 2028, including four before the end of this year. This schedule aims to provide predictability for companies, states, and other stakeholders planning projects that require significant investment and infrastructure. The administration is determined to support the nascent U.S. offshore wind industry amidst rising costs and challenges.
The Biden administration has announced new details of its plan to combat climate change and transition to clean energy. The plan includes a focus on protecting while also aiming to in the Southwest. The administration’s goal is to achieve specific targets by 2030.
The U.S. Department of Energy (DOE) has awarded CleanTech Strategies (CTS) a $5 million grant to support collaborative research and development on flow batteries, a promising technology for long duration energy storage. CTS will partner with industry experts, flow battery companies, and research institutions to advance flow battery maturation and cost-effectiveness, aligning with DOE’s energy storage goals.
The Biden administration’s American Climate Corps has launched with 2,000 paid positions available in 36 states and territories. The program aims to recruit and train 20,000 young people in skills needed to combat climate change and transition into clean energy trades or federal service. Positions include invasive plant manager, botany technician, and fisheries intern, with opportunities to work on forest monitoring, trail building, and other projects. Applications are now open, with the first participants expected to start this summer. The initiative is inspired by the New Deal-era Civilian Conservation Corps and has been supported by progressive lawmakers, but falls short of their initial goal of 1.5 million workers.
According to Nikhil Bhandari, co-head of Asia-Pacific natural resources and clean energy at Goldman Sachs, grid infrastructure will play a crucial role in enabling the region’s transition to renewable energy.
Pennsylvania has become the first state in the nation to achieve a clean energy threshold, with at least half of the electricity needed to power 16 state government agencies coming from solar energy within one to three years. The state’s Project to Utilize Light and Solar Energy (PA PULSE) will provide more reliable, affordable electricity while reducing carbon emissions. The 10 solar arrays will generate 361,000 megawatt hours of electricity, equivalent to the power needed for 35,000 homes annually. Pennsylvania is also setting new clean energy portfolio standards, aiming for 50% of its energy sources to come from zero or near-zero emissions by 2035.
Maine will receive $62 million from the Environmental Protection Agency to increase solar power access for low-income and disadvantaged communities. The funding will provide incentives for residential solar panels, energy storage, and community solar programs, aiming to reduce financial barriers and promote energy resilience.
iShares Global Clean Energy ETF (ICLN) currently warrants a hold rating due to several barriers facing the global clean energy industry. While the long-term outlook for clean energy is promising, near-term challenges in U.S., European, and Asian markets are impeding growth. High costs for clean energy, stunted demand, and the prevalence of fossil fuels are significant roadblocks. Investors should be aware of the volatility associated with ICLN and similar ETFs, as they tend to experience more fluctuations than the broader market.
