First, according to Bloomberg News , Credit Suisse has recently had several issues, including a potential criminal investigation in America and an inquiry by the US Congress (paywall). Second, no one has offered an actual link to the Credit Suisse report even though this story has been covered extensively by Twitter and The Atlantic . Yours self did a rigorous Google search but came up empty. Robinson Meyer of The Atlantic, however, appears to have read it and has the following to say.
“Investment bank Credit Suisse analysts produced a research note about America’s new climate bill late last month, but it received little attention. The bank contended that the Inflation Reduction Act (IRA) is considerably more significant than has been acknowledged thus far. The IRA, according to the bank, “will have a major effect across industries in the next decade and beyond” and might ultimately determine the course of the American economy. The analysis demonstrates how, despite the avalanche of press the climate bill received earlier this year, we are still only starting to comprehend how it operates and what it could imply for the economy.
“The report specifically emphasized a few general points that merit attention. The IRA might spend twice as much as Congress anticipates, to start. Many of the IRA’s most significant elements are “uncapped” tax credits, including its incentives for electric vehicles and zero-carbon electricity. So long as you abide by their conditions, the government will grant you access to them. The amount of money that the government can spend is not constrained by a budget or other legal provisions. The Congressional Budget Office’s projection of how much those tax credits will be utilized is a key factor in arriving at the frequently reported number of $374 billion for the amount of money the IRA will spend fighting climate change.
But the bank says that assessment is inaccurate. In fact, so many people and businesses will take advantage of these tax credits that the IRA’s overall spending would almost certainly exceed $800 billion, which is double the amount predicted by the CBO. Additionally, because federal spending often spurs private investment, over the next 10 years, the economy as a whole might spend almost $1.7 trillion on climate-related projects. It is uncertain whether this additional funding will result in greater carbon reductions than anticipated by earlier estimates, but it is much more money coming into green energy companies than the CBO anticipated.
Second, the bank claims that the United States is “poised to become the world’s premier energy provider.” America already produces more oil and natural gas than any other country in the world. According to the paper, the IRA has a competitive advantage in low-cost clean electricity and hydrogen production, infrastructure, geologic storage, and human capital. This might further increase its advantage in all forms of energy production. According to the bank’s projections, U.S. solar and wind energy might be the cheapest in the world by 2029, costing under $5 per megawatt-hour. Additionally, it will advance its competitiveness in wind turbines, hydrogen, and carbon capture and storage.
Credit Suisse also considered what may occur if reactionaries and proponents of fossil fuels take over the White House or Congress. Because “Republican-leaning states are expected to receive the largest investment, job, and economic gains from the IRA,” they don’t believe there is much likelihood that it will be abolished. Given how frequently people vote against their own best interests, this argument appears flimsy.
The development of America’s energy infrastructure will be the IRA’s biggest challenge. According to Credit Suisse, influential industry groups are already pushing for changes to the IRA’s provisions that favor transmission.
THE CHANCE IS MASSIVE According to Meyer, for cautious investors, sustainable energy is currently a wise, safe, and government-backed investment. It’s a staggering 180-degree turn from the previous 40 years. The world of people interested in the issue hasn’t yet processed it because it is such a drastic change. Then he makes some of his own forecasts.
1. The number of Americans employed in fields related to climate change will skyrocket. It will go through a process that you can call a techification. The chance will be too great, the money too alluring, and the issues too intriguing.
2. Managing climate change is a legitimately challenging technical and cultural issue that will call for as many keen minds as possible. This is your chance to get involved if you’ve always been concerned about climate change but don’t currently work in the field. There is now room for everyone that these organizations will need, including engineers, programmers, accountants, marketers, HR professionals, and general counsels.
“More change will occur in the next four years in the fight against climate change than it has in the previous 40. The grand narrative of our life is just getting started. “Welcome on board,” he says.
DIFFERENT PEOPLE ARE BUYING REGENERATIVE ENERGY Once more, we may say “thanks Putin.” As a response to high energy prices and the geopolitical risk of relying on others for power, the government put up this strategy back in August.
— Sam James Morgan (@SamJamesMorgan) October 12, 2022
Most European nations are vying with one another to prove to Putin that they can survive without cheap Russian gas. The most recent example is Estonia. Its government adopted a plan to use solely renewable energy for electricity by 2030 late last month. But the tale is not over yet. By 2030, Estonia wants 42% of its electricity to come from renewable sources. The 40% aim has now been advanced to 2025, and that target will be considerably increased.
The remaining energy will be produced by burning biomass, or wood and wood products. There is a lot of disagreement about this subject. In contrast to wind and solar, which produce no carbon emissions, it is debatably better than burning coal or artificial gas. ERR News claims that the government has just just released a tender for the generation of 540 GWh of renewable energy, with much more on the way.
“It is obvious that a shortage of generation capacity is to blame for the current high rates of power. All customers are now in a perilous situation that needs to be addressed right away due to high fossil fuel prices and a lack of generating capacity, according to Minister of Economic Affairs and Infrastructure Riina Sikkut (SDE) on Thursday.
“Fortunately, these market signals have pushed businesses to decide to invest in expanding their ability to produce renewable energy, and the state is doing everything it can to support these initiatives. The government must make it clear that by 2030, all of the electricity we use must come from renewable sources in order to stimulate investment in this environment, the minister continued.
THE CONCLUSION We are all present as history reaches a turning point. The entire energy required by the Earth to meet its needs is provided by a massive nuclear reactor in the sky. We just need to harvest it. (The energy we receive from the sun also results in winds.) Even while there is some merit to the notion that the US shouldn’t be telling the rest of the world what to do, it still has a significant impact on other countries.
The Inflation Reduction Act will have ripple effects that spread around the world, especially in nations like Russia that are headed by autocrats (and China and Saudi Arabia as well). Even if you disagree with the concept of renewable energy, the most of us would be content to see those nations’ influence decline as the need for fossil fuels declines. The transition to sustainable energy has officially started. There is no going back at this point.
A tip of the head to FreedomEV, a stalwart of CleanTechnica.
Like the uniqueness and cleantech news coverage of CleanTechnica? Think about becoming an Patreon patron or a member, supporter, technician, or ambassador for CleanTechnica. Don’t miss a cleantech story, will ya? Register for Credit Suisse 0 by email. Or Credit Suisse 1 Want to advertise with CleanTechnica, send us a tip, or propose a speaker for our podcast CleanTech Talk? You can reach us here.
