The podcast covers challenges faced in obtaining permits for energy projects in the US, streamlining the project approval process, the potential impact of an inflation reduction act on the energy industry, empowering women through financial education, investing in oneself and building a personal business, and the misconceptions and challenges in ESG investing.
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Quick takeaways
The complex and time-consuming US permitting system for energy projects creates delays, costs billions of dollars, and forms unexpected alliances among clean energy and fossil fuel stakeholders.
Streamlining the permitting process by simplifying environmental reviews, reducing court involvement, and establishing consistent guidelines can accelerate project timelines, reduce uncertainty, and promote a clearer understanding of ESG factors.
Deep dives
The Challenges of Obtaining Permits for Energy Projects in the US
Obtaining permits for new energy projects in the US is a complex and time-consuming process. The outdated and complicated permitting system causes significant delays and costs companies billions of dollars. Projects such as transmission lines, gas pipelines, and solar farms can take years or even decades to get all the necessary permits. This bureaucratic inefficiency hampers the progress of the energy transition and the fight against climate change. Surprisingly, this issue has created unlikely alliances between oil companies, clean energy companies, Republicans, and Democrats, all advocating for a more streamlined permitting system.
The Inefficiency of the US Permitting System
The US permitting system for new energy projects is hindered by inefficiency and complexity. Environmental reviews, federal agency approvals, and judicial reviews often prolong the process. The multi-step and lengthy timelines impact project costs, hinder investment returns, and slow down the progression towards clean energy goals. Advocates for permitting reform propose streamlining environmental reviews and limiting court involvement to expedite the process. Ultimately, the goal is to simplify the system and establish a more efficient pathway for project approval.
The Impact of Permitting Challenges on Clean Energy and Fossil Fuels
Permitting challenges affect both clean energy and fossil fuel projects. Clean energy initiatives, such as transmission lines for renewable power and solar farms, face significant delays and financial burdens. These setbacks hinder the expansion of renewable energy sources and the transition to cleaner electricity. Similarly, fossil fuel projects, like gas pipelines, also encounter permitting obstacles, impacting their ability to export liquefied natural gas. While both clean energy and fossil fuel stakeholders push for permitting reforms, clean energy stands to gain more from an overall system improvement.
The Need for Permitting Reform and Public Understanding
The call for permitting reform revolves around streamlining processes, enhancing transparency, and setting clearer boundaries. Simplifying environmental reviews, reducing court involvement, and establishing consistent guidelines can accelerate project timelines and reduce uncertainty. However, public understanding and awareness of the permitting system's complexities remain a challenge. Misunderstandings and lack of education contribute to the reluctance of individuals and investors to embrace ESG (environmental, social, and governance) factors. Moving forward, a clearer understanding, uniform standards, and transparent approaches are necessary to create a robust and effective permitting system.
Bloomberg Businessweek Editor Joel Weber and Bloomberg News Energy Reporter Josh Saul provide the details of Josh's Businessweek Magazine story Permits for US Energy Projects Are So Bad Unlikely Allies Emerge. Haley Sacks, Founder of Finance is Cool, talks about using social media to educate people on their finances. Bloomberg Intelligence Senior ESG Research Strategist Shaheen Contractor discusses her BNY Mellon Pershing Insite panel Then vs. Now - The Evolution of Sustainable Investing. Hosts: Carol Massar and Matt Miller: Paul Brennan.