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    I Feel Utterly Hopeless About American Climate Policy

    In a column published in June 2021, I declared the coming year would be a “hinge in history” for American participation in the global effort to address the climate crisis. Having won the White House and control of the House and the Senate, Democrats had cracked open a rare window of political opportunity — their first chance since 2010 to pass major federal legislation to reduce our carbon emissions.But the window wasn’t very big, and it wouldn’t stay open long. President Biden had proposed setting a target of 2030 for the United States to cut carbon emissions to half of 2005 levels. He’d outlined hundreds of billions of dollars of investments in clean energy, public transit, electric vehicle infrastructure, severe weather preparedness and climate-related research and development. Now, in the face of united Republican opposition, and with midterm politicking rapidly approaching, could Democrats seize what I called “the country’s last best political opportunity” to address climate change and pass Biden’s plan?Well, a year has passed, and the answer is in: Nope.When Senator Joe Manchin pulled his support last week for even a significantly scaled-down version of Biden’s climate plan, America’s great window of opportunity all but slammed shut. Manchin’s decision was no surprise — he has been stringing his party along for more than a year — but for me it still packed a wallop.Was I thrown into a spiral of despair about the incapacity of our political system to take on urgent issues? Was I left feeling hopeless about the world’s efforts to avoid climate scientists’ worst-case scenarios? Did I wonder more than once what even was the point of Democrats running the show if they could not secure this plan? Yeah, maybe just a little.It is difficult to overstate the case for a huge federal effort on climate change. It’s popular — most Americans think Congress should address the causes and effects of climate change. And because there are new disasters brought about by a warming planet seemingly every week now, the issue will only grow more urgent. (About 100 million Americans are sweating through severe heat this week.)Biden’s plan also made economic sense: Regardless of whether America participates, a global transition to renewable fuels is already underway. China leads the United States (and the rest of the world) in growth in renewable power generation capacity and in solar panel manufacturing; because the Chinese government is investing heavily in renewables while we are not, we risk falling further behind in industries that will dominate the future.It has also rarely been clearer that our dependence on fossil fuels is doing us no national security favors. Biden was in Saudi Arabia last week when he conceded defeat on the climate bill. He was there to ask one brutal petromonarch for more oil because another brutal petromonarch is using his fossil fuel profits to finance an invasion of a sovereign neighbor. But despite an embarrassing fist bump with the Saudi crown prince, whose country Biden once aimed to sideline as a global “pariah,” the president hasn’t yet secured any guarantees for more oil. That may change at an upcoming meeting of the OPEC+ oil cartel — but shouldn’t we be striving for a future in which we wouldn’t have to bend to such characters because they happen to sit on a lot of dead plants and animals?It’s precisely the strength of the case for federal climate action that has left me feeling so down. Democrats seem headed toward losing their congressional majorities in the midterms, and Biden’s approval ratings are abysmal. It is difficult to imagine the party will get another shot at taking major climate action anytime soon. What will become of climate change as a political issue if Democrats are out in the political wilderness? Are we doomed to another decade of inaction?Climate experts told me not to abandon all hope. Alex Trembath, the deputy director of the Breakthrough Institute, an environmental research group, took issue last year with my characterization of Biden’s plan as a do-or-die moment for the American climate movement.“There isn’t a 12-year deadline or a one-year deadline,” Trembath told me this week. He argued that advocacy that leans on such deadlines is bound to provoke nihilism, and that a better way to talk about climate change is as a long-term issue that we will have to keep dealing with for as long as we live. More

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    10 Challenges Biden Faces in Righting the Economy

    #masthead-section-label, #masthead-bar-one { display: none }The Presidential InaugurationliveLatest UpdatesQuestions, AnsweredWho’s PerformingHeightened SecurityPast Inaugural FirstsJoseph R. Biden Jr.Credit…Ryan Pfluger for The New York TimesSkip to contentSkip to site index10 Challenges Biden Faces in Righting the EconomyThe pandemic has damaged the economy and cost millions of people their livelihoods. These are some of the areas that demand Joe Biden’s attention.Joseph R. Biden Jr.Credit…Ryan Pfluger for The New York TimesSupported byContinue reading the main storyJan. 19, 2021Updated 2:59 p.m. ETAll presidents come into office vowing to rapidly put into effect an ambitious agenda. But for Joseph R. Biden Jr., the raging coronavirus pandemic and the economic pain it is causing mean many things must get done quickly if he wants to get the economy going. In a speech Thursday on his $1.9 trillion spending proposal, Mr. Biden repeatedly stressed the need to act “now.”But piecing together a majority in Congress could take time: Compromises and concessions will be needed to get the votes he will need to advance legislation.The new president is expected to reverse many of Donald J. Trump’s policies that undid those of the Obama administration, in which Mr. Biden was vice president. But in some areas crucial to business — like trade relations with China and the European Union — he probably will not return the United States to the pre-Trump order. Nor is he likely to back off from the Trump administration’s efforts to curb the power of large technology firms.Here are some policy areas that will demand Mr. Biden’s attention, and determine the success of his presidency. — More

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    How Sustainable Is the Rally in Renewable Energy Stocks?

    AdvertisementContinue reading the main storySupported byContinue reading the main storyHow Sustainable Is the Rally in Renewable Energy Stocks?Solar and wind power companies have soared in value. Are they in a bubble or in a virtuous upward cycle?Installing solar panels on a rooftop in Fort Greene, Brooklyn. Solar power is the cheapest source of electricity in many countries, according to the International Energy Agency.Credit…Karsten Moran for The New York TimesJan. 14, 2021Updated 1:50 p.m. ETThe overall stock market was fabulous last year, but as investors focused on climate change, renewable energy stocks did even better.Consider that while the SPDR S&P 500 Exchange-Traded Fund Trust, which tracks the benchmark S&P 500, returned 18.37 percent in 2020, the Invesco Solar E.T.F., which tracks an index of solar energy stocks, soared 233.95 percent, according to Morningstar Direct. The Invesco WilderHill E.T.F., which invests more broadly in alternative energy of various types, rose 204.83 percent.Returns like those are so strong that they are unlikely to be replicated: It is possible that the stocks of companies engaged in carbon-free energy production are already in a bubble. Jason Bloom, head of fixed income and alternative E.T.F.s for Invesco, describes the sector this way: “I would call it rational optimism in view of improving fundamentals.”The International Energy Agency recently called solar-generated energy the “cheapest” electricity source in many countries. In the United States, it accounts for just 3 percent of energy output, but it is increasing rapidly. Wind power, which now supplies roughly 8 percent of domestic energy, has also been growing. There is plenty of room for expansion for many renewable energy companies.The results of the presidential election have already bolstered the returns of these companies, too. While President Trump has promoted the use of fossil fuels like coal, President-elect Joseph R. Biden Jr. has advocated a $2 trillion climate plan to “achieve a carbon pollution-free power sector by 2035.” His plan, not yet fully detailed, includes a variety of investment inducements and tax breaks.That would be more ambitious than the once-trendsetting 2045 goal of carbon-free energy production set by California. Already, solar power accounts for 18 percent of electricity generation at the utility Southern California Edison, said Erica Bowman, the company’s director of resource and environmental planning and strategy.Garvin Jabusch, chief investment officer for Green Alpha Advisors, an alternative energy investor, notes that the cost of generating electricity from solar energy is 90 percent lower than 10 years ago. Mr. Jabusch expects alternative energy prices to decline further with expanded demand. Mr. Jabusch favors companies that are “growing production capacity,” like First Solar, which has opened a new plant in Lake Township, Ohio, to expand production of its solar panels.For all its promise, investment in solar and wind power is limited by the laws of nature: Solar units can produce electricity only when the sun is shining, and wind turbines need wind.For the most part, Southern California Edison backs up its solar power with electricity generated by natural gas. But the utility recently contracted for nearly 600 megawatts of lithium ion battery storage so it can store excess electricity produced under ideal weather conditions.“Battery prices are down 90 percent over the last five to eight years,” Ms. Bowman said. “As we transition to a cleaner grid, solar generation coupled with battery storage is the cost-effective solution for California,” she added.Hydrogen fuel cells, which produce electricity by combining hydrogen and oxygen, have emerged as a possible near-term solution for use in trucking and shipping, says Mr. Bloom. But such applications will require a costly expansion of the hydrogen gas filling station network, said Steve Capanna, director of U.S. climate policy and analysis for the Environmental Defense Fund. Right now, he said, beyond “a handful in California,” there aren’t many such stations.Buying shares of renewable energy stocks now requires a degree of faith, because they are so expensive, partly because of the low interest rates engineered by the Federal Reserve, which have helped to drive the overall stock market higher. Fed support may be the biggest reason the market has withstood all the grim economic news of the coronavirus to continue its seemingly unending valuation advance.Paul Coster, a JPMorgan analyst, said that the high prices in the renewables sector are based on solid achievement. “It’s not like the dot-com era,” he said. “These are real actors with real technology.” He added, “We’re living in this wonderful moment in time when virtue and self-interest coincide.”Perhaps, Mr. Coster mused, there are still good reasons to own some of these stocks. He cited FuelCell Energy, which has negative cash flow and has consistently reported quarterly earnings losses. Mr. Coster said investors may want to project out several years.By 2025, he said, it’s “feasible” that FuelCell Energy would have $60 million in earnings before interest, taxes, depreciation and amortization, justifying a rich, growth stock valuation. Even so, the company’s shares more than doubled in the last month, and on Jan. 14, Mr. Coster warned that at current prices, the stock was already “richly valued.”AdvertisementContinue reading the main story More

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    Al Gore: I Have Hope on the Climate Crisis. America Must Lead.

    AdvertisementContinue reading the main storyOpinionSupported byContinue reading the main storyAl Gore: Where I Find HopeThe Biden administration will have the opportunity to restore confidence in America and take on the worsening climate crisis.Mr. Gore was the 45th vice president of the United States.Dec. 12, 2020Al Gore at the United Nations Climate Change Conference in 2015.Credit…Francois Mori/Associated Press­­­­­This weekend marks two anniversaries that, for me, point a way forward through the accumulated wreckage of the past year.The first is personal. Twenty years ago, I ended my presidential campaign after the Supreme Court abruptly decided the 2000 election. As the incumbent vice president, my duty then turned to presiding over the tallying of Electoral College votes in Congress to elect my opponent. This process will unfold again on Monday as the college’s electors ratify America’s choice of Joe Biden as the next president, ending a long and fraught campaign and reaffirming the continuity of our democracy.The second anniversary is universal and hopeful. This weekend also marks the fifth anniversary of the adoption of the Paris Agreement. One of President Trump’s first orders of business nearly four years ago was to pull the United States out of the accord, signed by 194 other nations to reduce the emissions of greenhouse gases threatening the planet. With Mr. Trump heading for the exit, President-elect Biden plans to rejoin the agreement on his Inauguration Day, Jan. 20.Now, with Mr. Biden about to take up residence in the White House, the United States has the chance to reclaim America’s leadership position in the world after four years in the back seat.Mr. Biden’s challenges will be monumental. Most immediately, he assumes office in the midst of the chaos from the colossal failure to respond effectively to the coronavirus pandemic and the economic devastation that has resulted.And though the pandemic fills our field of vision at the moment, it is only the most urgent of the multiple crises facing the country and planet, including 40 years of economic stagnation for middle-income families; hyper-inequality of incomes and wealth, with high levels of poverty; horrific structural racism; toxic partisanship; the impending collapse of nuclear arms control agreements; an epistemological crisis undermining the authority of knowledge; recklessly unprincipled behavior by social media companies; and, most dangerous of all, the climate crisis.What lies before us is the opportunity to build a more just and equitable way of life for all humankind. This potential new beginning comes at a rare moment when it may be possible to break the stranglehold of the past over the future, when the trajectory of history might be altered by what we choose to do with a new vision.With the coronavirus death toll rising rapidly, the battle against the pandemic is desperate, but it will be won. Yet we will still be in the midst of an even more life-threatening battle — to protect the Earth’s climate balance — with consequences measured not only in months and years, but also in centuries and millenniums. Winning will require us to re-establish our compact with nature and our place within the planet’s ecological systems, for the sake not only of civilization’s survival but also of the preservation of the rich web of biodiversity on which human life depends.The daunting prospect of successfully confronting such large challenges at a time after bitter divisions were exposed and weaponized in the presidential campaign has caused many people to despair. Yet these problems, however profound, are all solvable.Look at the pandemic. Despite the policy failures and human tragedies, at least one success now burns bright: Scientists have harnessed incredible breakthroughs in biotechnology to produce several vaccines in record time. With medical trials demonstrating their safety and efficacy, these new vaccines prefigure an end to the pandemic in the new year. This triumph alone should put an end to the concerted challenges to facts and science that have threatened to undermine reason as the basis for decision-making.Similarly, even as the climate crisis rapidly worsens, scientists, engineers and business leaders are making use of stunning advances in technology to end the world’s dependence on fossil fuels far sooner than was hoped possible.Mr. Biden will take office at a time when humankind faces the choice of life over death. Two years ago, the Intergovernmental Panel on Climate Change warned of severe consequences — coastal inundations and worsening droughts, among other catastrophes — if greenhouse gas emissions are not reduced by 45 percent from 2010 levels by 2030 and 100 percent by 2050.Slowing the rapid warming of the planet will require a unified global effort. Mr. Biden can lead by strengthening the country’s commitment to reduce emissions under the Paris Agreement — something the country is poised to do thanks to the work of cities, states, businesses and investors, which have continued to make progress despite resistance from the Trump administration.Solar energy is one example. The cost of solar panels has fallen 89 percent in the past decade, and the cost of wind turbines has dropped 59 percent. The International Energy Agency projects that 90 percent of all new electricity capacity worldwide in 2020 will be from clean energy — up from 80 percent in 2019, when total global investment in wind and solar was already more than three times as large as investments in gas and coal.Over the next five years, the I.E.A. projects that clean energy will constitute 95 percent of all new power generation globally. The agency recently called solar power “the new king” in global energy markets and “the cheapest source of electricity in history.”As renewable energy costs continue to drop, many utilities are speeding up the retirement of existing fossil fuel plants well before their projected lifetimes expire and replacing them with solar and wind, plus batteries. In a study this summer, the Rocky Mountain Institute, the Carbon Tracker Initiative and the Sierra Club reported that clean energy is now cheaper than 79 percent of U.S. coal plants and 39 percent of coal plants in the rest of the world — a number projected to increase rapidly. Other analyses show that clean energy combined with batteries is already cheaper than most new natural gas plants.As a former oil minister in Saudi Arabia put it 20 years ago, “the Stone Age came to an end, not because we had a lack of stones, and the oil age will come to an end not because we have a lack of oil.” Many global investors have reached the same conclusion and are beginning to shift capital away from climate-destroying businesses to sustainable solutions. The pressure is no longer coming from only a small group of pioneers, endowments, family foundations and church-based pension funds; some of the world’s largest investment firms are now joining this movement, too, having belatedly recognized that fossil fuels have been extremely poor investments for a long while. Thirty asset managers overseeing $9 trillion announced on Friday an agreement to align their portfolios with net-zero emissions by 2050.Exxon Mobil, long a major source of funding for grossly unethical climate denial propaganda, just wrote down the value of its fossil fuel reserves by as much as $20 billion, adding to the unbelievable $170 billion in oil and gas assets written down by the industry in just the first half of this year. Last year, a BP executive said that some of the company’s reserves “won’t see the light of day,” and this summer it committed to a 10-fold increase in low-carbon investments this decade as part of its commitment to net-zero emissions.The world has finally begun to cross a political tipping point, too. Grass-roots climate activists, often led by young people of Greta Thunberg’s generation, are marching every week now (even virtually during the pandemic). In the United States, this movement crosses party lines. More than 50 college conservative and Republican organizations have petitioned the Republican National Committee to change its position on climate, lest the party lose younger voters.Significantly, in just the past three months, several of the world’s most important political leaders have introduced important initiatives. Thanks to the leadership of Ursula von der Leyen, the president of the European Commission, the E.U. just announced that it will reduce greenhouse gas emissions by 55 percent in the next nine years. President Xi Jinping has pledged that China will achieve net-zero carbon emissions in 2060. Leaders in Japan and South Korea said a few weeks ago said that their countries will reach net-zero emissions in 2050.Denmark, the E.U.’s largest producer of gas and oil, has announced a ban on further exploration for fossil fuels. Britain has pledged a 68 percent reduction by 2030, along with a ban on sales of vehicles equipped with only gasoline-powered internal-combustion engines.The cost of batteries for electric vehicles has dropped by 89 percent over the past decade, and according to Bloomberg New Energy Finance, these vehicles will reach price parity with internal-combustion vehicles within two years in key segments of vehicle markets in the United States, Europe and Australia, followed quickly by China and much of the rest of the world. Sales of internal-combustion passenger vehicles worldwide peaked in 2017. It is in this new global context that President-elect Biden has made the decarbonization of the U.S. electricity grid by 2035 a centerpiece of his economic plan. Coupled with an accelerated conversion to electric vehicles and an end to government subsidies for fossil fuels, among other initiatives, these efforts can help put the nation on a path toward net-zero emissions by 2050.As the United States moves forward, it must put frontline communities — often poor, Black, brown or Indigenous — at the center of the climate agenda. They have suffered disproportionate harm from climate pollution. This is reinforced by recent evidence that air pollution from the burning of fossil fuels — to which these communities bear outsize exposure — makes them more vulnerable to Covid-19.With millions of new jobs needed to recover from the economic ravages of the pandemic, sustainable businesses are among the best bets. A recent study in the Oxford Review of Economic Policy noted that investments in those enterprises result in three times as many new jobs as investments in fossil fuels. Between 2014 and 2019, solar jobs grew five times as fast in the United States as average job growth.Still, all of these positive developments fall far short of the emissions reductions required. The climate crisis is getting worse faster than we are deploying solutions.In November of next year, all of the signatories to the Paris Agreement will meet in Glasgow with a mandate to reduce greenhouse gas emissions much faster than they pledged to do in 2015. What will be new in Glasgow is transparency: By the time the delegates arrive, a new monitoring effort made possible by an array of advanced technologies will have precisely measured the emissions from every major source of greenhouse gases in the world, with most of that data updated every six hours.With this radical transparency, a result of efforts of a broad coalition of corporations and nonprofits I helped to start called Climate Trace (for tracking real-time atmospheric carbon emissions), countries will have no place to hide when failing to meet their emissions commitments. This precision tracking will replace the erratic, self-reported and often inaccurate data on which past climate agreements were based.Even then, a speedy phaseout of carbon pollution will require functional democracies. With the casting of a majority of the Electoral College votes on Monday for Mr. Biden, and then his inauguration, we will make a start in restoring America as the country best positioned to lead the world’s struggle to solve the climate crisis.To do that, we need to deal forthrightly with our shortcomings instead of touting our strengths. That, and that alone, can position the United States to recover the respect of other nations and restore their confidence in America as a reliable partner in the great challenges humankind faces. As in the pandemic, knowledge will be our salvation, but to succeed, we must learn to work together, lest we perish together.Al Gore shared the 2007 Nobel Peace Prize with the Intergovernmental Panel on Climate Change for his work to slow global warming.The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram.AdvertisementContinue reading the main story More