Energy Policy Now

Nick Rohleder, Energy Policy Now’s former editorial assistant and current climate entrepreneur, discusses the challenge of managing the investment risk inherent in emerging clean energy technologies. --- Last year, $1.1 trillion dollars were invested globally in carbon-free energy technologies and infrastructure. This volume of investment marked a significant milestone, as the first year in which money directed to clean energy equaled investment in the global oil and gas industry. Yet rising clean energy investment masks a critical barrier to the deployment of climate technologies and infrastructure, many of which are new and relatively unproven. As low-carbon solutions are rushed to market to meet urgent climate challenges, they carry inherent technology and implementation risks that can create a disincentive to investment, in particular for investors that are not accustomed to weighing such risks. Nick Rohleder, a Penn alumnus, former editorial assistant to Energy Policy Now, and now a climate entrepreneur, discusses the nature of climate technology risk and why it poses a barrier to investment. He also looks at how commercialization and technology risks can be managed with the goal of accelerating the deployment of climate solutions. Nicholaus Rohleder is co-founder of Climate Commodities and Climate Risk Partners. Related Content The Prospects for Pennsylvania as a RGGI Member https://kleinmanenergy.upenn.edu/research/publications/the-prospects-for-pennsylvania-as-a-rggi-member/ Ammonia’s Role in a Net-Zero Hydrogen Economy https://kleinmanenergy.upenn.edu/research/publications/ammonias-role-in-a-net-zero-hydrogen-economy/   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.edu See omnystudio.com/listener for privacy information.

Exploring Pennsylvania's legal and political hurdles to joining the RGGI market, the podcast delves into the economic and climate impacts of transitioning from coal to renewable energy. It discusses the opposition faced by Pennsylvania, job effects of coal plant closures, and the implications of Reggie on gas generators and drillers. The uncertain future lies in Governor Shapiro's hands, who is yet to commit to the market's development.

A geographer explores the impact of location on worker opportunity and equity in the clean energy economy. --- The Inflation Reduction Act earmarks hundreds of billions of dollars for clean energy and the development of jobs in the clean energy supply chain, construction and operations. Critically, the law also acknowledges that the transition to clean energy presents a generational opportunity to address labor inequities that are rooted in race and gender, as well as the often overlooked element of geography.  Nikki Luke, an assistant professor of Geography at the University of Tennessee, explores how state-level labor policies have contributed to geographic labor inequities that, if they persist, could limit access to quality jobs across the new energy economy. She also looks at local models to support inclusivity, and the role of organized labor in the energy transition.  Nikki Luke is an assistant professor of Geography at the University of Tennessee. Related Content Gender Baseline Assessment of Energy Compacts https://kleinmanenergy.upenn.edu/research/publications/gender-baseline-assessment-of-energy-compacts/ Energy Transition and Opportunity in the Oil Patch https://kleinmanenergy.upenn.edu/podcast/energy-transition-and-opportunity-in-the-oil-patch/ Organized Labor Sees Promise in Transition to Clean Energy https://kleinmanenergy.upenn.edu/podcast/organized-labor-sees-promise-in-transition-to-clean-energy/   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.eduSee omnystudio.com/listener for privacy information.

Princeton University researchers have launched a global survey aimed at spotting and eliminating practical barriers to a net-zero carbon future. Description Much work needs to be done, very quickly, if if a net-zero carbon economy is to become reality by the middle of this century. Yet, the fact is that the current rate of investment in clean energy technology and today’s pace of clean infrastructure deployment lag well behind what will be needed to reach the mid-century goal, and limit climate change impacts. On the podcast, two researchers from Princeton University discuss their work to identify key bottlenecks to the acceleration of the energy transition in the areas of finance, workforce mobilization, and related challenges through a recently launched global survey into barriers to achieving net-zero. They also take a deep dive into a series of critical shifts that, if they take place, hold the promise of delivering an accelerated rate of decarbonization toward the 2050 goal. Elke Weber is a Professor of Psychology and Public Affairs, and Professor of Energy and Environment at Princeton University’s Andlinger Center for Energy and the Environment. Chris Greig is a Senior Research Scientist at the Andlinger Center and former energy industry executive. Related Content Accelerating Climate Action  https://kleinmanenergy.upenn.edu/podcast/accelerating-climate-action/ The Net-Zero Governance Conveyor Belt https://kleinmanenergy.upenn.edu/research/publications/the-net-zero-governance-conveyor-belt/ Ammonia’s Role in a Net-Zero Hydrogen Economy https://kleinmanenergy.upenn.edu/research/publications/ammonias-role-in-a-net-zero-hydrogen-economy/   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.eduSee omnystudio.com/listener for privacy information.

PJM Interconnection is in a race to shore up electric grid reliability as the transition from fossil fuels to clean energy accelerates. --- In February PJM Interconnection, the largest wholesale electricity market in the US, published a report that points to the very real possibility that electricity supply in the market could fall short of the level needed for reliable grid operation in just five years. The potential shortfall is tied to the pace of the energy transition, in which fossil fuel generators, and coal plants in particular, are retiring faster than they can be replaced by new clean and renewable generation. The report has led to a flurry of activity in PJM, as its members rush headlong into a process to reform the way the market manages, and values the reliability that generators bring to the electricity system. Abe Silverman, Director of the Non Technical Barriers to the Clean Energy Transition program at Columbia University’s Center on Global Energy Policy, explores efforts underway in PJM to revise market rules to ensure that supply meets demand at all times, including during extreme weather events that have recently threatened the reliability of the grid. The resource adequacy challenges to be addressed are immensely complex, and extend beyond the fundamentals of energy technology to encompass the diverse economic and environmental priorities at play in the market and, more broadly, across the nation. Abe Silverman is Director of the Non Technical Barriers to the Clean Energy Transition research and policy program at Columbia University’s Center on Global Energy Policy. He is former General Counsel for the New Jersey Board of Public Utilities. Related Content Wholesale Electricity Justice https://kleinmanenergy.upenn.edu/research/publications/wholesale-electricity-justice/ Massive Shift toward Solar Power Begins in Largest U.S. Electricity Market https://kleinmanenergy.upenn.edu/podcast/massive-shift-toward-solar-power-begins-in-largest-u-s-electricity-market/ The Economics of Building Electrification https://kleinmanenergy.upenn.edu/research/publications/the-economics-of-building-electrification/   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.eduSee omnystudio.com/listener for privacy information.

A senior climate diplomat discusses scientific, economic, and diplomatic barriers to rapid global decarbonization. --- In March the Intergovernmental Panel on Climate Change released the final volume of its Sixth Assessment report on progress toward addressing climate change. The findings of the report aren’t encouraging, and point to an acceleration of climate impacts and continued growth in fossil fuel use. Possibly the most candid assessment of the report’s findings came in a statement from the United Nations Secretary General, Antonio Gutierrez, who stated that developed countries must reach net zero by the year 2040, well ahead of declared targets, if hope is to remain of minimizing climate risks. In the podcast Simon Sharpe, Director of Economics for the UNFCCC Climate Champions and author of a newly published book, “Five Times Faster,” discusses his experience as one of the United Kingdom’s senior climate diplomats, and the frustrations, and alarm, that accompany the less than adequate pace of emissions reductions to date. Sharpe discusses his book’s exploration of the scientific, economic and diplomatic realities that have prevented rapid progress toward a net-zero global economy, and offers suggestions for constructive collaboration to accelerate the transition to cleaner forms of energy. Simon Sharpe is Director of Economics for the UNFCCC Climate Champions, and a Senior Fellow at the World Resources Institute.   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.edu Related Content The Net Zero Governance Conveyor Belt https://kleinmanenergy.upenn.edu/research/publications/the-net-zero-governance-conveyor-belt/ Nicholas Stern on the Role of Economics in Combating Climate Change https://kleinmanenergy.upenn.edu/podcast/nicholas-stern-on-the-role-of-economics-in-combating-climate-change/ Have We Reached Peak Carbon Emissions? https://kleinmanenergy.upenn.edu/research/publications/have-we-reached-peak-carbon-emissions/See omnystudio.com/listener for privacy information.

New research examines the relationship between climate change-related events and returns on green investment, and why returns for green stocks might lag those of brown. --- At first look it would seem to make sense that, as climate concerns grow, green investments would outperform investments in dirty industries. To put this into an energy context, as policymakers require more renewable energy to be deployed, and as investors flock to companies with low climate impacts and risks, the value of those companies would substantially increase, rewarding investors through higher returns. Yet recent research suggests that this assumption may not be true. Or, at least, that the story isn’t as clear cut as one might intuitively expect. Luke Taylor, a professor of finance at the Wharton School, explores the drivers of green returns. In new research, Taylor and coauthors look at the past decade of returns on ESG portfolios, and at how environmental policies, and investor demand for all things green, combined to influence returns on green stocks. Luke Taylor is a professor of finance at the Wharton School at the University of Pennsylvania. His recent research paper is “Dissecting Green Returns.”   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.eduSee omnystudio.com/listener for privacy information.

New research looks into the coping mechanisms that families use to navigate energy insecurity, as a guide for policy-based solutions. --- The number of American households experiencing energy insecurity spiked during the COVID pandemic in 2020, as growing unemployment and falling incomes made it difficult for more households to balance utility bills with other financial demands. Yet the rising incidence of energy insecurity, and the often short-term focus of assistance to keep families financially afloat, belies the reality that energy insecurity is often a chronic challenge that predates acute financial crises, and persists long after. Sanya Carley, director of the Energy Justice Lab at Indiana University’s O’Neill School of Public and Environmental Affairs, discusses the nature of household energy insecurity, and novel research into the coping mechanisms that families experiencing energy insecurity use to juggle often competing needs of energy, food, and healthcare. Carley also talks about existing public policy measures to address energy insecurity, and the need for new types of data to underpin effective policy action. Sanya Carley is director of the Energy Justice Lab at Indiana University’s O’Neill School of Public and Environmental Affairs, and a visiting scholar at the Kleinman Center for Energy Policy at the University of Pennsylvania. Related Content Gender Baseline Assessment of Energy Compacts https://kleinmanenergy.upenn.edu/research/publications/gender-baseline-assessment-of-energy-compacts/ Opportunities to Equitably Expand Bikeshare: Learning from the Covid-19 Period https://kleinmanenergy.upenn.edu/research/publications/opportunities-to-equitably-expand-bikeshare-learning-from-the-covid-19-period/ Barriers to Energy Efficiency Adoption in Low-Income Communities https://kleinmanenergy.upenn.edu/research/publications/barriers-to-energy-efficiency-adoption-in-low-income-communities/   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.eduSee omnystudio.com/listener for privacy information.

A working paper from WRI, the International Solar Alliance and Bloomberg Philanthropies examines the essential role of private finance in scaling solar power development.--- A recent working paper from the World Resources Institute, the International Solar Alliance and Bloomberg Philanthropies finds that $1 trillion must be invested into solar energy by 2030 if global warming is to be kept within the limits of the Paris Climate Agreement.  Yet global investment in solar today is just half of what will be required. Massive amounts of financial capital, much of it private, must be available to ramp up solar development, particularly in developing regions of the globe where political and economic risks may otherwise present barriers to investment. Laura Van Wie McGrory, WRI’s Global Engagement Lead for Scaling Up Solar and a co-author of “Our Solar Future: Roadmap to Mobilize USD 1 Trillion by 2030,” explores strategies to de-risk solar investment and scale private capital toward the $1 trillion goal. Laura Van Wie McGrory is Global Engagement Lead for the World Resources Institute’s Scaling Up Solar initiative, where she coordinates efforts to mobilize investment for global solar power. Related Content: Kenya’s Clean Energy Transition Gets a Boost from Solar Power https://kleinmanenergy.upenn.edu/news-insights/kenyas-clean-energy-transition-gets-a-boost-from-solar-power/ Regulating Utility-Scale Solar Projects on Agricultural Land https://kleinmanenergy.upenn.edu/research/publications/regulating-utility-scale-solar-projects-on-agricultural-land/ Harvesting the Sun: On-Farm Opportunities and Challenges for Solar Development https://kleinmanenergy.upenn.edu/research/publications/harvesting-the-sun-on-farm-opportunities-and-challenges-for-solar-development/   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.eduSee omnystudio.com/listener for privacy information.

Judy Chang, former Massachusetts undersecretary of Energy and Climate Solutions, discusses the need to educate consumers on the imperative to cut building emissions. --- Residential and commercial buildings account for nearly a third of climate warming greenhouse gas emissions in the United States.  Yet efforts to reduce the climate footprint of buildings have become political lightning rods.  Local regulations requiring new homes to be fully electrified often encounter fierce pushback, while at least 20 states have moved to outlaw local bans on natural gas connections in new homes.  Politics aside, business and home owners may have little awareness of their building’s climate footprint, and often lack the time and motivation to explore alternatives like electric space and water heating. Judy Chang, former Massachusetts undersecretary of Energy and Climate Solutions, discusses the political, economic hurdles to cutting the climate impact of buildings.  She also examines the role that consumers will play in efforts to decarbonize, and the need to educate consumers on the imperative to cut building emissions. Related Content The Net-Zero Governance Conveyor Belt https://kleinmanenergy.upenn.edu/research/publications/the-net-zero-governance-conveyor-belt/ The Economics of Building Electrification https://kleinmanenergy.upenn.edu/research/publications/the-economics-of-building-electrification/ Net-Zero Nevada: From Pledge to Action  https://kleinmanenergy.upenn.edu/research/publications/net-zero-nevada-from-pledge-to-action/   Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.edu  See omnystudio.com/listener for privacy information.