It can be a game changer.
Months of negotiations between Democratic lawmakers in the Senate led to a deal Wednesday to invest heavily in keeping the U.S. energy system free of fossil fuels and nearly fulfilling the promises the U.S. made under the Paris Agreement. created.
If passed, it would be the largest investment in renewable energy in US history.
Feeling a little whiplash? That’s why we bring you a special edition of this newsletter.
The deal comes two weeks after West Virginia Democratic Senator Joe Manchin rejected a similar package, saying it could exacerbate inflation. The latest package is called the Inflation Reduction Act.
Manchin’s backing is key, as Republicans oppose in a evenly-matched Senate. One by one.
What is included?
Central to climate is our $369 billion investment in climate and energy programs. That’s four times the US government’s last investment in climate change in 2009. The package has the effect of lowering the cost of wind and solar energy, and climate protection advocates said they hoped the proposed injection would significantly reduce the cost of manufacturing wind turbines. rice field. , solar panels, batteries for electric vehicles.
The bill aims to end the use of oil, gas and coal, which when burned contribute to global warming.
As my colleagues Lisa Friedman and Brad Plummer have written, this bill will use tax incentives to promote low-emission energy industries over the next decade. For example, a company would receive financial incentives to keep a potentially closed nuclear power plant running. Car buyers can receive tax credits for purchasing electric vehicles. Rebates are available for those who make their homes more energy efficient or install electric heat pumps and electric water heaters.
The bill would also penalize oil and gas companies that fail to cut methane emissions and reward those that do. Methane is a fast-acting greenhouse gas, and methane reduction is seen as the fastest way to slow the rise in emissions.
What about fossil fuel development?
This bill does not abandon the development of new fossil fuels. Otherwise, he would not have won the support of Mr. Manchin, who receives more money from the fossil fuel sector than any other senator.
Manchin said he won promises from fellow Democrats to approve another measure within weeks to address the process of issuing permits for energy infrastructure that could include gas pipelines.
The bill also calls for new lease sales for oil drilling in federal land and waters, including the Gulf of Mexico, which environmental groups have opposed.
Both will prolong the country’s dependence on fossil fuels.
What is not included?
The bill’s $369 billion in energy spending is less than the $555 billion included in the Build Back Better package that the House passed in November. The new deal also doesn’t support social programs Democrats championed, like the private Climate Action Corps, Lisa explained.
Nor does it include proposals previously backed by Democrats to reward utilities that ramp up low-carbon energy and punish those that don’t.
How important is it?
The United States is the largest greenhouse gas emitter in history. It is the only country to briefly withdraw from the 2015 Paris Agreement. The Trump administration has rolled back many environmental regulations that were supposed to curb emissions.
The Biden administration has rejoined the global pact, pledging to reduce US emissions by at least 50% by 2030 compared to 2005 levels. According to independent research, this package doesn’t go that far, but it comes close. This will reduce her emissions by 40% by 2030 compared to 2005 levels.
“It keeps us in the fight against climate change” Jesse JenkinsA professor of engineering at Princeton University said on Twitter:
The United Kingdom and the European Union, historically large emitters, have passed their own climate legislation requiring significant reductions by 2030. Australia’s newly elected government has proposed a climate law this week. China, currently the world’s largest emitter, has only said it will peak emissions by 2030 and then reduce them.
Whether or not these pledges are honored will have major implications for countries whose emissions will continue to rise and will grow even more rapidly in the coming years: emerging powers such as India, Brazil and South Africa.
Important news from The Times
Saving by Chainsaw: Yosemite’s trees are under constant threat from wildfires, so many experts say it’s time to cut and burn them for protection.
West Virginia Penalizes Banks: Authorities have banned some financial institutions from doing business with the country. They say it’s because banks don’t support coal.
Websites about heat: Concerned about the increasing severity of heatwaves, the U.S. government has created a new site to help Americans stay safe in the sweltering heat.
Record profits at Shell: The energy giants are thriving because oil and gas prices are soaring and markets for refined products are tight.
Improved economic data: We know climate change is hurting the economy, but tracking its impact in real time is difficult. Economists are working on ways to do that better.
UK warning: In an unusually early energy forecast, regulators have told customers to expect tight power supplies this winter.
An ecologist who captured the imagination: James Lovelock, who shaped our understanding of man-made pollutants and their impact on the climate, has passed away. he was 103 years old.
Before You Go: The Barbados Rebellion
The Caribbean is caught between crippling debt and a climate crisis wrought by rich countries. Barbados’ first female prime minister, Mia Motley, is fighting for a fairer system.
thank you for reading. Due to this special edition, Climate Forward will not be shown on Fridays. I will be back on Tuesday.
Manuela Andreoni, Claire O’Neill and Douglas Alteen contributed to Climate Forward.
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