Tag: clean energy
Why Trump Is Driving Our Allies Closer And Closer To China

Why Trump Is Driving Our Allies Closer And Closer To China

In World War II, the United States allied with Stalin to defeat Hitler. No one had any illusions about Stalin being a great supporter of democracy. The reason for the alliance is that the Soviet Union had one of the most powerful militaries on the planet and the United States desperately needed its help to defeat Hitler and the other Axis powers.

The European Union, Canada, and every other country interested in preserving democracy in the age of Trump needs to think in the same way about allying with China. No one would mistake China for a being beacon of democracy, but it does have the largest economy in the world, and its manufacturing capacity, especially in the areas of clean energy and electric vehicles, can be a huge benefit to the rest of the world as it tries to break free of its reliance on the United States.

At this point, it should be apparent to anyone other than the rear-end kissers in Trump’s cabinet that being in any way dependent on Donald Trump is a route to disaster. Trump could not care less about even the mid-term future (he’s 79-years-old and in bad health), much less the longer-term future for the United States and the world. He wants to shake everyone down as much as he can for as long as he can.

That was the story of his “Liberation Day” tariffs. There was no coherence to the various tariff rates imposed on U.S. imports from different countries. He came up with a formula that made zero sense and used this as a starting point. Countries that were nice to him saw some reductions. Countries that Trump felt were being mean, like Brazil, India, and China, saw higher rates.

But the big problem with Trump was not the initial tariffs, it’s that he always wants more. He doesn’t like the tax on digital commerce that the EU has, so he is threatening more tariffs. He doesn’t like their value-added taxes, again more tariffs. And he wants them to join his crusade to wreck the planet by burning more fossil fuels and is threatening more tariffs for countries that won’t go along.

As long as the EU, Canada, and anyone else is prepared to give in to Trump’s demands, he will keep asking for more. In this context, the only strategy that makes any sense is for the rest of the world to integrate as quickly as possible, with the goal of reducing its dependence on the United States as much as possible.

Closer ties with China should feature front and center in this picture. China has cutting edge technology in many areas. The EU and other countries should look to take advantage of this technology, both in getting high quality and low-cost imports, and also by arranging for technology transfers.

The latter is something that would have to be negotiated, but China already has many arrangements with trading partners where it agrees to establish factories there in exchange for access to their markets. Surely the EU, Canada, and other major countries could negotiate the same sorts of deals that Thailand has formally with EVs, and countries like Mexico and Indonesia have informally.

This could lead to a situation where EU consumers could get access to a limited number of high quality Chinese EVs for around $10,000 a piece, while they develop their own production facilities to quickly supply their own markets with EVs. It should be possible to ramp up quickly so that EVs rapidly replace conventional internal combustion cars. EVs already account for more than half of new car sales in China. There is no reason the EU, Canada, and rest of the world, outside of the U.S., can’t do the same in a relatively short period of time.

There is a similar story with wind and solar energy. China’s installations of wind and solar are roughly equal to the rest of the world combined, and growing rapidly. And the cost of electricity generated through these sources is half the cost of energy from coal or gas. The EU, Canada, and the rest can look to quickly build up both their power generation from these sources, as well as their domestic production of wind turbines and solar panels through technology transfers.

Cheap EVs and low-cost electricity should go far towards sustaining living standards through a transition away from dependence on U.S. trade. There will undoubtedly be many issues to iron out in working through trade deals, but at this point it should be clear that closer economic ties to China are preferable to being dependent on the whims of the five-year-old in the White House.

Dean Baker is an economist, author, and co-founder of the Center for Economic Policy and Research. His writing has appeared in many major publications, including The Atlantic, The Washington Post, and The Financial Times. Please consider subscribing to his Substack.

Reprinted with permission from Substack.

Why Trump Can't Repeal The Clean Energy Revolution

Why Trump Can't Repeal The Clean Energy Revolution

"Some may seek to deny or delay the clean energy revolution that's underway in America, but nobody — nobody — can reverse it. Nobody. Not when so many people, regardless of party or politics, are enjoying its benefits." Still-President Joe Biden said that on a recent visit to Brazil.

His administration's Inflation Reduction Act, for example, included $400 billion in subsidies for solar power, electric vehicles and other renewable energy technologies. Its goal is to slash carbon emissions, the main driver of climate change and the environmental chaos it unleashes.

President-elect Donald Trump has called climate change a "hoax." And drilling remains his answer for every energy question.

Never mind whether Trump or anyone else thinks climate change is real. One thing that is very real is the jobs the IRA is creating. It happens that 60 percent of these new jobs are in red states. If their Republican representatives don't want them, no problem. There are plenty of other takers.

But they apparently do want these jobs. At least 18 House Republicans have made clear to House Speaker Mike Johnson their opposition to repealing the IRA. Meanwhile, some of the big oil companies that held fundraisers for Trump have clean energy projects funded by the IRA. They also don't want the IRA canceled, at least the parts that benefit them.

Responsible world leaders regard a warming planet as a security as well as environmental threat. Melting ice glaciers and associated rising sea levels are flooding towns and cities, endangering ports, roads and other infrastructure. Higher temperatures are stoking more intense storms, heat waves, droughts and wildfires. They are wrecking ecosystems.

This is a worldwide problem demanding a worldwide solution. Under Biden, the U.S. has met a pledge to increase international climate financing this year to more than $11 billion.

Obviously, neither Trump's heart nor his brain is engaged in dealing with this threat to our future. And so where can Americans turn for leadership on this existential crisis?

They can turn to California. If it were a country, California would be the world's fifth largest economy. It's not an easy place for Trump to push around, and the Golden State cares a whole lot about climate change.

For example, Trump seems hot to end the electric vehicle tax credit. If that happens, Democratic Gov. Gavin Newsom says, California will offer its own tax rebate. And he seems to be structuring the credit so that some popular Tesla models won't qualify for it.

The governor insists that he merely wants to help other carmakers "take root" in the EV market. But another motive is to stick it to Elon Musk over the Tesla founder's California bashing and his glomming onto Trump.

On this matter, California has a good deal of muscle. About one in three EVs sold in the U.S. are sold in California. As other carmakers bring out new and less expensive EV models, California could help break Tesla's longtime dominance.

Trump says he wants to open the environmentally fragile Arctic National Wildlife Refuge to oil drilling. We'll see.

"I would be surprised if any major oil company, or even any middle oil company, submits bids," Larry Persily, publisher of the Alaska-based newspaper Wrangell Sentinel, said. "It is a high-cost, highly speculative play." And for all the whining about the price of gas, it's already below $3 a gallon in many places. You know, that supply-and-demand thing.

Biden's various legislative accomplishments have unlocked an estimated $1 trillion for green energy technologies and the factories needed to build them.

America is going ahead with the transition. Trump can't stop it. And to those who want to pass on its economic benefits, go ahead. Others will happily take your place.

Reprinted with permission from Creators.

Joe Biden

Biden Oversees Booming Growth In Oil Production (But Clean Energy Too)

Donald Trump recently warned that Joe Biden would lead us into World War II, a conflict that ended almost 80 years ago. Another world event he may not be current on is America's boom in oil production — never mind the green energy revolution.

"We are going to drill, baby, drill," Trump said on a recent Fox News town hall.

Actually, America is now pumping oil in record amounts. The U.S. now accounts for one in every eight barrels produced in the world. Prices are coming down, too.

As for Biden's clean energy program, it foresees a transition away from planet-heating fossil fuels. It also recognizes we're not there yet.

An essential piece in the move toward green energy is a switch-over to electric vehicles from the gasoline-powered kind. This is a worldwide phenomenon that the Biden administration has joined through a variety of subsidies.

In China, EVs are expected to reach 38 percent of total car sales this year, versus 13 percent of new purchases in the U.S. China is experimenting with vehicle-to-grid technology that would, amazingly, enable cars to feed electricity back into the system when demand surges. America should take notice.

In Trump's backward ideology, clean energy programs are a "new scam business." Trump is bashing the new technology at a time when U.S. automakers have planned $100 billion in electric car investments. Apparently ignorant of new developments, he keeps saying that EVs are "too expensive" and they "don't go far enough."

Dan Neil, car columnist at The Wall Street Journal, acknowledges some past glitches with EVs but then offers an update on Trump's claims. People who actually drive one of the new models, Neil writes, are finding it "quicker, quieter, more refined and responsive, more efficient, more connected and cheaper to operate than its gas-powered equivalent. ... After a few miles in an EV, going back to internal combustion feels like returning to whale-oil lamps."

Charging has already become easier as Biden's program to build half a million public fast chargers bears fruit. Other carmakers, meanwhile, have adopted Tesla's charging standard, enabling their EVs to use Tesla's supercharging network.

"Pretty soon range anxiety will be returned to neurotics," Neil adds.

As for the prices on EVs, they are expected to plummet in short order. Tesla is expected to soon introduce a Model 2 priced at only $25,000.

But in Trump world, everything has to be turned into a culture war. U.S. automakers consider these attacks worrisome, and so should their workers.

"I never thought I would see the day when our products were so heavily politicized, but they are," Ford Motor Co.'s executive chair Bill Ford said.

By the way, Americans remain free to buy gas-powered vehicles. But many are looking at plug-in hybrids as well.

The boost in U.S. oil production is coming largely from the usual parts of oil country: Texas, New Mexico, North Dakota, and Oklahoma. It reflects improved technology rather than an expansion in the number of rigs. In other words, companies are now extracting more oil from the same location, which means they can obtain it more cheaply. Oil producers are not complaining.

"Companies are making money and investors are making money," Bloomberg's energy columnist, Javier Blas, said. "So everyone is loving it."

The people who are not loving it are the Saudis. U.S. shale oil is growing and making money at the same time, Blas adds, and "this is what really terrorized OPEC."

Is it possible that America is reducing reliance on foreign oil while also addressing the planetary need to move toward clean energy? It is possible, and it's also happening. Biden's America is enjoying a boom in both.

Reprinted with permission from Creators.

Internet Slays Joe Manchin Over Dumb Comments That Fossil Fuels Can Produce Clean Energy

Internet Slays Joe Manchin Over Dumb Comments That Fossil Fuels Can Produce Clean Energy

United States Senator Joe Manchin (D-West Virginia) on Wednesday claimed that oil can be used to generate clean power as the nation transitions to renewables sources of energy.

"For us to be strong, to be the superpower of the world, we should develop here in North America a North American energy alliance with Canada and basically Mexico and the United States as one continent basically that could be the energy hub," Manchin told MSNBC's Joe Scarborough on Morning Joe.

"We can walk and chew gum at the same time. We can make sure that we produce the cleanest resources basically from fossil but also be able to segue into a cleaner environment with the technology and investments that it'll take to transition," Manchin continued.

"I think we can do both, but we have to maintain. You can't do just one and not the other and think we're gonna be fine. And that's what we're running into – the conundrum here. We should be ramping up production," Manchin added. "We should be out there doing everything we can to maintain our independence but be able to backfill everywhere we can. And if we don't get Europe up and loaded for next winter, for the summer when they've depleted all their reserves, there's gonna be a big problem coming."

Manchin – a wealthy coal magnate who drives a Maserati and lives on a yacht while representing one of the poorest states in the country – is a lone voice among the Democratic Senate caucus when it comes to retrofitting the American energy grid to tackle climate change. He killed President Joe Biden's Build Back Better plan in part because of its provisions that called for investments in renewables. Manchin also refuses to consider amending the filibuster, which Republicans used to obstruct the John Lewis Voting Rights Act.

Twitter blasted him for touting the very industry that is padding his pockets and poisoning our biosphere.

Reprinted with permission from Alternet

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