Since the start of the Biden Administration, data shows private clean energy investment is increasing faster than anticipated – spurred on by the Investing in America agenda.
Switching to cleaner energy solutions reduces electricity costs while simultaneously cutting air pollution levels – something which disproportionately harms low-income communities and Black, Indigenous, and People of Color (BIPOC) populations. But more needs to be done.
Clean Energy Legislation
NLC applauds President Biden’s signing into law of a climate bill which represents one of the largest investments ever in clean energy technology and sustainability. NLC regards it as an historic step toward meeting climate crisis head on, advancing environmental justice and creating jobs within this rapidly emerging renewable energy economy.
Tax credits could double wind and solar capacity while providing a 30% Investment Tax Credit (ITC) for green hydrogen (H2) produced from renewable electricity stored in batteries, marking it as one of the most significant developments to date in its fledgling field and making it “one of the cheapest sources of renewable-produced H2,” according to research firm Recharge.
The bill also allocates funding for building electric vehicle manufacturing facilities and improving fuel efficiency of existing vehicles and infrastructure, creating Neighborhood Access and Equity Grants that connect communities separated by infrastructure barriers, mitigate negative effects of transportation projects in low-income neighborhoods, support equitable planning for equitable transport projects and community engagement activities, as well as create equitable transportation planning grants and equitable transportation planning grant activities. Furthermore, a comprehensive National Energy Technology Laboratory was also created which would work on developing technologies necessary for reducing carbon emissions across all aspects of society.
Investments in Renewable Infrastructure
To achieve net-zero emissions in power generation and beyond, we require investments on an unprecedented scale. This involves expanding renewable energy technologies as well as upgrading and digitalizing power networks, making significant investments in battery production and storage for electric vehicles as well as substantial financial contributions towards their manufacturing.
One key priority should be supporting these projects by offering financial incentives and making necessary infrastructure more affordable. Research shows that investing in renewable energy can yield three times higher economic returns than investing in fossil fuels.
Investment in clean energy can help create good-paying jobs, lift the economy out of recession and spur long-term growth. Indeed, federal clean energy stimulus investments in the BIL include $76 billion for projects expected to create 860,300 full time direct, indirect and induced employment positions lasting five years or longer.
Many of the billions invested in BIL will be dispersed as competitive grants to facilitate development of key clean energy technologies like batteries, advanced nuclear and carbon capture – crucial in decarbonizing power sector emissions while mitigating climate change risks.
Clean Energy Research and Innovation
Attaining our climate goals requires developing technologies that accelerate deployment of clean energy technologies, with America as the world’s highest per capita emitter taking particular responsibility in this regard. In order to accelerate this pace of clean energy innovation, NRDC is asking DOE to use some of the $65 billion authorized in recent infrastructure bills and create hubs of research and development funding in various regions across the nation.
Hubs would bring together government, private sector and academic facilities to collaborate on specific technology areas that will lead us to a carbon pollution-free electricity system and net-zero emissions economy by 2035 and 2050 respectively. To do so, hubs must provide initial seed capital needed to attract outside investments and capitalize on expertise available at national laboratories; they also should offer public-private partnerships allowing access to national laboratory assets while offering license agreements to allow companies access and fellows/visas that support talented workers needed for success.
As an added benefit, these hubs could also provide economic revitalization in underserved communities. There are currently hundreds of oil and coal wells and mines across the country that remain abandoned despite having created environmental and health hazards; by offering employment to former fossil fuel workers to remediate these sites, clean energy hubs may reduce social backlash against sustained clean energy investments.
Grid Modernization Programs
As part of their efforts to modernize grid infrastructure, legislators, public utility commissions and energy providers are investing in grid modernization programs across the country. These investments aim to reduce consumer and company costs while expanding renewable energy access while strengthening resiliency.
The Biden-Harris administration recently unveiled two program offices to aid its grid modernization initiatives. The Grid Deployment Office will manage programs connecting communities, states and industry for national transmission, distribution and clean energy needs while the Office of State and Community Energy supports initiatives incorporating renewables, alleviating burdens on disadvantaged communities and creating jobs.
Grid modernization projects are developing innovative technologies to accurately measure, predict, and control future power systems. These technologies, such as software tools, sensors, and systems that monitor grid assets and energy flows, will give us deeper insight into how our electric system operates. This information will enable utilities to better balance fluctuating energy demand, respond quickly to outages and optimize resource use. With this knowledge in hand, they will also be better equipped to make smarter decisions when selecting renewable and zero-carbon resources, such as battery storage, microgrids, electric vehicles and vehicle-to-grid technology – enabling customers to use hybrid or electric cars as backup batteries during periods of increased electricity demand at home or business.
Green Jobs and Workforce Development
As the US works toward its decarbonization goals, millions of green jobs must be created in order to build and operate energy-efficient buildings, develop renewable energy sources, create cleaner transportation vehicles and protect coastal communities from rising sea levels. If policies are carefully tailored in order to maximize their effect on marginalized populations, these green jobs could improve local economic conditions as well.
Research by the Brookings Institution indicates that most of these jobs are skilled trades positions that offer competitive wages without necessitating four-year degrees, yet many go unfilled due to limited awareness or access to flexible training programs and supportive services.
Though faced with ample opportunity, local leaders remain challenged in optimizing the impact of federal climate funding. While numerous projects are now underway due to Infrastructure Investment and Jobs Act (IIJA) and Investing in a Cleaner America (IRA) funding streams, harnessing workforce development opportunities often comes as an afterthought – particularly those targeting improving school buses or building resilient communities where it may be particularly critical to hire workers from historically underserved neighborhoods.
Community Renewable Energy Projects:
Community-led energy projects focus on locally producing renewable energy from solar, wind or hydro sources to power local needs. By shifting away from fossil fuel sources to produce electricity locally instead, community-led energy projects help reduce greenhouse gas emissions and environmental degradation; increase energy independence; and become less vulnerable to price fluctuations or supply disruptions.
These initiatives bring many advantages, from economic development and energy security improvements, to educational opportunities and social cohesion increases. Community-based energy projects can also lead to sustainable business models and behavioral changes necessary for creating a zero-emission future.
Community energy groups in the UK are rapidly expanding. A recent study discovered that two-thirds of community energy schemes found their initial inspiration by learning of or seeing similar projects elsewhere – this informal network providing both ideas and support both technical and practical.
Community-based clean energy projects are quickly capturing policymakers’ interest. This may be in part because these projects offer access to clean energy for those unable to install renewables on their property; using alternative arrangements like value-of-solar tariffs and group billing they enable individuals or businesses to purchase power from a shared renewable energy scheme located elsewhere.
Carbon Reduction Targets
President Biden is leading an expansive effort to advance America’s clean energy transition, deepen global cooperation on climate, and bolster efforts worldwide to combat deforestation and other ecosystem threats. Since 2021 he has convened three Leaders Summits on Climate, ratified the Kigali Amendment of Montreal Protocol, and spearheaded ambitious multilateral efforts through forums such as ICAO and IMO.
Biden’s NDC places the United States on a path toward carbon pollution-free electricity by 2035, net zero emissions in buildings by 2030 and an overall climate action plan meeting or surpassing IPCC mitigation pathway consistent with 1.5degC temperature limit by 2050. State, local and tribal governments will help leverage energy efficiency, renewables, carbon capture and storage and existing nuclear power to reach these goals.
The NDC calls for swift measures to cut methane emissions in the oil and gas sector, one of the fastest and cheapest ways to cut greenhouse gases. These steps include adopting stronger passenger vehicle standards in history; investing to triple electric vehicle manufacturing capacity; and taking an inclusive whole-of-government approach in combatting deforestation and other ecosystem threats both domestically and abroad.
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