U.S. to spend more than $500 billion on climate over a decade under three laws, study says – EQ Mag Pro
MEXICO CITY : Controversial energy reforms have stalled alternative energy projects in Mexico, prompting companies to cut carbon emissions while avoiding fighting Mexican regulators. We are increasingly looking to small renewable options that allow us to reduce our volume.
Solar companies and energy analysts say there is an unprecedented surge in distributed generation (DG) solar projects. Distributed generation (DG) solar projects have a threshold of 500 kilowatts in Mexico, which is loosely regulated and large enough to power about 200 households.
Bread maker Grupo Bimbo (BIMBOA.MX) and French energy company ENGIE (ENGIE.PA) are increasingly relying on DG. These projects often provide only 10% or 20% of a company’s energy needs, but according to Andres Friedman, CEO of Canadian-Mexican solar startup Solfium, currently is considered “the only game in town”.
Even with the projected explosive growth in the DG, analysts say Mexico is well positioned to cope with the energy transition given government policies continue to prioritize fossil-generated electricity. I don’t think it is.
U.S. to spend more than $500 billion on climate over a decade under three laws, study says
The tally is based on this month’s Inflation Reduction and CHIPS acts and last year’s Infrastructure Investment and Jobs Act.
- ongress will have to pass further legislation for some of the funding to be released
- The CHIPS bill will fund climate-related efforts in materials science
- Annual federal spending on climate and clean energy over the next five years will be roughly 15 times that of the 1990s
The US government will spend more than $500 billion on climate technology and clean energy over the next decade under three recently enacted laws, an analysis by non-profit RMI found.
The tally is based on this month’s Inflation Reduction and CHIPS acts and last year’s Infrastructure Investment and Jobs Act. Together they fund climate-related research and pilot studies and support manufacturing.
“Together they form a coherent green industrial policy, in the sense that there are strategic industries that they focus on and a set of tools designed to accelerate production up and down the supply chain,” said Lachlan Carey, co-author of the report, published on Monday.
The estimated $514 billion total includes $362 billion from the IRA, $98 billion from the infrastructure act and $54 billion from the bipartisan-supported CHIPS law, although Congress will have to pass further legislation for some of the funding to be released. The analysis excludes additional agriculture and land-related climate spending.
The CHIPS bill, for instance, will fund climate-related efforts in materials science such as developing new battery chemistry and more efficient solar panels.
Annual federal spending on climate and clean energy over the next five years will be roughly 15 times that of the 1990s and early 2000s and about triple that of recent years, the study said.
U.S. government estimates show renewable energy is becoming a bigger part of production.
But study authors said climate action needed to speed up.
“It’s a long process that we don’t have time to be that long. Like solar and wind took 40 years – we have 10 years,” said Jun Shepard, another co-author.
Source: Reuters
