{"id":422,"date":"2020-04-18T16:42:52","date_gmt":"2020-04-18T16:42:52","guid":{"rendered":"http:\/\/blogs.nicholas.duke.edu\/env212\/?p=422"},"modified":"2020-04-18T16:42:52","modified_gmt":"2020-04-18T16:42:52","slug":"covid-19-and-the-need-for-climate-action-extending-grace-to-solar-and-wind-by-ivy-jiang","status":"publish","type":"post","link":"https:\/\/blogs.nicholas.duke.edu\/env212\/covid-19-and-the-need-for-climate-action-extending-grace-to-solar-and-wind-by-ivy-jiang\/","title":{"rendered":"COVID-19 and the Need for Climate Action: Extending Grace to Solar and Wind by Ivy Jiang"},"content":{"rendered":"

The Crisis<\/em><\/strong><\/p>\n

The world is suffering through a debilitating pandemic: non-essential businesses are out of commission, academic institutions have shifted online, and families are scrambling to protect themselves and their loved ones. As we rush to minimize damage in the face of an existential threat, the need for drastic action is evident. The United States undeniably fumbled its response to COVID-19, resulting in the greatest number of cases in the world[1]<\/a> despite months to prepare from the examples of Italy and China. Even as we saw countries like South Korea[2]<\/a> flatten the curve with remarkably extensive testing and citizen compliance, the United States has failed to secure enough testing, personal protective equipment for medical staff, and a cohesive response to enforce social distancing. We\u2019ve made the issue partisan<\/a>[3]<\/a> instead of heeding expert public health advice\u2014similar to our response to another crisis.<\/p>\n

The Parallels<\/em><\/strong><\/p>\n

Reactions to the pandemic mirror our nation\u2019s response to climate change on a vastly accelerated timeline. Initial denial<\/a>[4]<\/a> and rejection of scientific recommendations coupled with conspiracy theories[5]<\/a> about China[6]<\/a>, subsequent criticism of solutions as too expensive[7]<\/a>, and finally\u2014foreseeable in climate change but not yet actualized\u2014lack of preparation that threatens to overwhelm the system when the problem inevitably materializes. As a psychologist who studies the spread of misinformation quotes, \u201cWe went through the stages of climate change denial in the matter of a week.\u201d This rapid scale of crisis should inspire us to take the climate problem more seriously than ever. Implementing unprecedented and drastic social distancing measures has saved lives by flattening the curve in the novel coronavirus crisis[8]<\/a>. Preemptive action to mitigate the worst effects of climate change will also protect against massive loss of life.<\/p>\n

One critical component of mitigation is the wide-scale transition to clean energy. The IPCC, a global coalition of scientists modeling climate effects, released forecasts that renewable energy must range from 70-85% of the electricity share in 2050 to avoid the worst of climate change[9]<\/a>. For comparison, the share of renewables in global electricity generation was 26% in 2018, with growth driven primarily by solar PV and wind installations[10]<\/a>.<\/p>\n

The Problem<\/em><\/strong><\/p>\n

Some American Congressional leaders have blocked attempts to include any \u201cgreen\u201d appeals in the stimulus package. The $2.2 trillion \u201cCoronavirus Aid, Relief, and Economics Security Act\u201d\u2014also known as the \u201cCARES Act\u201d\u2014budgeted $500 billion for corporate bailouts, including relief funds for companies like Delta and Boeing[11]<\/a>. However, Congress rejected requests from renewable energy companies along with demands like airline accountability for carbon offsets[12]<\/a>. The solar and wind industries that were already struggling from disruptions to supply chains in the trade war with China[13]<\/a> are now faced with deadlines that they can\u2019t meet.<\/p>\n

These industries are seeking extensions of the solar Investment Tax Credit (ITC) and wind Production Tax Credit (PTC)[14]<\/a>. The ITC and PTC are critical federal tax credits with strict construction deadlines\u2014they\u2019ve proven to be instrumental incentives for renewable energy growth in the US[15]<\/a>. The current ITC is a 26 percent tax credit for solar system projects that begin construction in 2020. However, the credit decreases to 22 percent for projects that begin construction in 2021. Similarly, the PTC provides a tax credit of 1.5 cents per kilowatt-hour for a decade for wind projects commencing construction this year[16]<\/a>. The problem is that many projects are at risk of not starting construction as planned in 2020 due to labor disruption from social distancing mandates, delivery delays caused by China\u2019s economic shutdown, and serious financing concerns[17]<\/a>.<\/p>\n

In an industry with already slim margins, the economics of installation vary greatly between the 26 percent tax deduction of a solar system in 2020 versus a 22 percent tax deduction of a system in 2021[18]<\/a>. Delaying to the following year and losing that 4 percent in tax credits could derail thousands of planned wind and solar projects. Investors are spooked and hundreds of thousands of jobs are threatened[19]<\/a>, while sidetracking tens of billions of investment dollars.<\/p>\n

The Potential Solution<\/em><\/strong><\/p>\n

Speaker of the House Nancy Pelosi is calling for a fourth stimulus plan addressing infrastructure[20]<\/a>. Seeing as the solar industry alone injects $19 billion annually[21]<\/a> in infrastructure investments across America, this would be a second chance for lawmakers to support the clean energy industry that employs nearly 3.3 million Americans[22]<\/a>. Extending ITC and PTC tax credit deadlines that would have applied in 2020 to the following year is imperative.<\/p>\n

The COVID-19 pandemic sheds light on the need to take scientists\u2019 recommendations quickly and early, to prepare for the worst outcomes, and to take drastic measures in the face of an existential threat. To promote a reduced-carbon future, we must\u2014at a minimum\u2014maintain the trajectory of projects already set in motion before this crisis. Any postponement of transitions to clean energy means less actionable mitigation before the climate experiences feedback loops that we can no longer control. Given the importance of renewable energy to energy independence, job growth, and climate change mitigation, Congressional extensions of ITC and PTC financing options are essential inclusions in the next COVID-19 stimulus bill.<\/p>\n

 <\/p>\n

Endnotes<\/strong><\/em><\/p>\n

[1]<\/a> Nicole Chavez, Holly Yan, and Madeline Holcombe, \u201cUS has more known cases of coronavirus than any other country,\u201d CNN, <\/em>March 27, 2020, https:\/\/www.cnn.com\/2020\/03\/26\/health\/coronavirus-thousand-deaths-thursday\/index.html<\/a>.<\/p>\n

[2]<\/a> Max Fisher and Choe Sang-Hun, \u201cHow South Korea Flattened the Curve,\u201d The New York Times, <\/em>March 23, 2020, https:\/\/www.nytimes.com\/2020\/03\/23\/world\/asia\/coronavirus-south-korea-flatten-curve.html<\/a>.<\/p>\n

[3]<\/a> David Roberts, \u201cPartisanship is the strongest predictor of coronavirus response,\u201d Vox, <\/em>March 31, 2020, https:\/\/www.vox.com\/science-and-health\/2020\/3\/31\/21199271\/coronavirus-in-us-trump-republicans-democrats-survey-epistemic-crisis<\/a>.<\/p>\n

[4]<\/a> David Leonhardt, \u201cA Complete List of Trump\u2019s Attempts to Play Down Coronavirus,\u201d The New York Times, <\/em>March 15, 2020, https:\/\/www.nytimes.com\/2020\/03\/15\/opinion\/trump-coronavirus.html<\/a>.<\/p>\n

[5]<\/a> Calvin Woodward, \u201cChina pushed back on Trump administration coronavirus theory,\u201d Associated Press, <\/em>April 16, 2020, https:\/\/apnews.com\/887c6ae4116951bb9bc7375e3dc8b158<\/a>.<\/p>\n

[6]<\/a> Edward Wong, \u201cTrump Has Called Climate Change a Chinese Hoax. Beijing Says It Is Anything But.\u201d The New York Times, <\/em>November 18, 2016, https:\/\/www.nytimes.com\/2016\/11\/19\/world\/asia\/china-trump-climate-change.html<\/a>.<\/p>\n

[7]<\/a> Media Matters Staff, \u201cGlenn Beck says older Americans should return to work: \u2018Even if we all get sick, I would rather die than kill the country,\u2019\u201d Media Matters, <\/em>March 24, 2020, https:\/\/www.mediamatters.org\/glenn-beck\/glenn-beck-says-older-americans-should-return-work-even-if-we-all-get-sick-i-would<\/a>.<\/p>\n

[8]<\/a> Russell Berman, \u201cThe City That Has Flattened the Coronavirus Curve,\u201d April 12, 2020, https:\/\/www.theatlantic.com\/politics\/archive\/2020\/04\/coronavirus-san-francisco-london-breed\/609808\/<\/a>.<\/p>\n

[9]<\/a> Emma Foehringer Merchant, \u201cIPCC: Renewables to Supply 70%-85% of Electricity by 2050 to Avoid Worst Impacts of Climate Change,\u201d Greentech Media <\/em><\/p>\n

[10]<\/a> IEA, \u201cRenewables 2019,\u201d October 2019, https:\/\/www.iea.org\/reports\/renewables-2019\/distributed-solar-pv<\/a>.<\/p>\n

[11]<\/a> Jim Tankersley et al., \u201cThe Coronavirus Economy: When Washington Takes Over Business,\u201d The New York Times, <\/em>March 26, 2020, https:\/\/www.nytimes.com\/2020\/03\/26\/business\/economy\/coronavirus-relief-bill.html<\/a>.<\/p>\n

[12]<\/a> Alexander Bolton, \u201cMcConnell excoriates Democrats over stimulus demands,\u201d The Hill,<\/em> March 23, 2020, https:\/\/thehill.com\/homenews\/senate\/489021-mcconnell-excoriates-democrats-over-stimulus-demands<\/a>.<\/p>\n

[13]<\/a> Xiaojing Sun, \u201cLook to the Solar Industry for Answers About the Trade War\u2019s Impact,\u201d Greentech Media, <\/em>August 8, 2019, https:\/\/www.greentechmedia.com\/articles\/read\/look-to-the-solar-industry-for-answers-about-trade-wars-impact<\/a>.<\/p>\n

[14]<\/a> Abigail Ross Hopper and Thomas C. Kiernan, \u201cJoint Letter to Congress from SEIA & AWEA,\u201d SEIA and AWEA, <\/em>March 18, 2020, https:\/\/www.seia.org\/research-resources\/joint-letter-congress-seia-awea<\/a>.<\/p>\n

[15]<\/a> SEIA, \u201cSolar Investment Tax Credit (ITC),\u201d n.d., https:\/\/www.seia.org\/initiatives\/solar-investment-tax-credit-itc<\/a>.<\/p>\n

[16]<\/a> WINDExchange, \u201cProduction Tax Credit and Investment Tax Credit for Wind,\u201d U.S. Department of Energy Wind Energy Technologies Office<\/em>, n.d., https:\/\/windexchange.energy.gov\/projects\/tax-credits<\/a>.<\/p>\n

[17]<\/a> Hopper and Kiernan, \u201cJoint Letter to Congress.\u201d<\/p>\n

[18]<\/a> Energy Sage, \u201cInvestment tax credit for solar power,\u201d March 11, 2020, https:\/\/www.energysage.com\/solar\/cost-benefit\/solar-investment-tax-credit\/<\/a>.<\/p>\n

[19]<\/a> Hopper and Kiernan, \u201cJoint Letter to Congress.\u201d<\/p>\n

[20]<\/a> Emily Cochrane, \u201cNancy Pelosi Is Already Talking About the Next Stimulus Bill for Coronavirus Relief,\u201d The New York Times, <\/em>April 16, 2020, https:\/\/www.nytimes.com\/2020\/03\/30\/us\/politics\/coronavirus-stimulus-relief-congress.html<\/a>.<\/p>\n

[21]<\/a> SEIA, \u201cSolar Industry Letter to U.S. Congress on COVID-19 Recovery Legislation,\u201d March 23, 2020, https:\/\/www.seia.org\/sites\/default\/files\/2020-03\/Solar%20Industry%20Letter%20COVID-19%20Economic%20Stimulus%203-23-20_0.pdf<\/a>.<\/p>\n

[22]<\/a> Silvio Marcacci, \u201cRenewable Energy Job Boom Creates Economic Opportunity As Coal Industry Slumps,\u201d Forbes, <\/em>April 22, 2019, https:\/\/www.forbes.com\/sites\/energyinnovation\/2019\/04\/22\/renewable-energy-job-boom-creating-economic-opportunity-as-coal-industry-slumps\/#63f52eea3665<\/a>.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The Crisis The world is suffering through a debilitating pandemic: non-essential businesses are out of commission, academic institutions have shifted online, and families are scrambling to protect themselves and their loved ones. As we rushContinue reading<\/a><\/p>\n","protected":false},"author":771,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"coauthors":[81],"class_list":["post-422","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9AMMK-6O","jetpack_likes_enabled":true,"jetpack-related-posts":[{"id":606,"url":"https:\/\/blogs.nicholas.duke.edu\/env212\/unmasking-the-issue-covid-19-pollution-by-cassie-shriver\/","url_meta":{"origin":422,"position":0},"title":"Un\u201cmasking\u201d the Issue: COVID-19 Pollution by Cassie Shriver","author":"Dr Betsy Albright, D.Phil.","date":"April 5, 2021","format":false,"excerpt":"Phone, keys, wallet, mask. 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