☀️ Biden's solar shake-up

Plus: New carbon record | Monday, June 06, 2022

Open in app View in browser   Presented By ICE   Axios Generate By Ben Geman and Andrew Freedman · Jun 06, 2022 👋 Welcome back! Today's Smart Brevity count is 1,020 words, 4 minutes.  📬 Did a friend send you this newsletter? Welcome, please sign up. 🎶 This week in 1978 Dire Straits released its debut album, which provides today's intro tune...     1 big thing: White House steps into solar fray Illustration: Gabriella Turrisi/Axios   The White House is directly intervening in a dispute over solar trade policy that has threatened to knock President Biden's clean energy goals even further off track, Ben writes. Driving the news: Officials plan to provide a two-year reprieve from new panel import tariffs that may stem from the Commerce Department's probe of whether Chinese companies are dodging U.S. penalties, per multiple reports and a key industry group. President Biden also plans to invoke the Defense Production Act to boost the manufacturing of panels and other clean energy equipment in the U.S. Reuters first reported the upcoming moves. Why it matters: The U.S. solar industry and analysts say the monthslong Commerce investigation has created uncertainty that's delaying many U.S. projects. The big picture: Here are a few initial takeaways while we await the specifics of the plans... 1. The market is responding already. Share prices of solar developers including SunRun, SunPower and others are up in pre-market trading. 2. It couldn't go on like this. The White House has been under intensifying pressure from developers and many lawmakers to address what the industry calls a major roadblock to new projects. A May 10 estimate from the consultancy Rystad Energy said 64% of 2022 U.S. solar additions are "in jeopardy," mostly because of the threat of new tariffs. Today's announcements show how concern over the probe and its effect has reached the highest levels of the Biden administration. However, use of the DPA is also a boost to domestic manufacturers. 3. Developers are happy. "We applaud President Biden's thoughtful approach to addressing the current crisis of the paralyzed solar supply chain," Abigail Ross Hopper, CEO of the Solar Energy Industries Association, said in a statement. "During the two-year tariff suspension window, the U.S. solar industry can return to rapid deployment while the Defense Production Act helps grow American solar manufacturing," she said. 4. Industrial policy — so hot right now. The administration has used the Defense Production Act several times for various reasons, including the baby formula crisis just last month, and President Trump used it too. The Cold War-era statute gives the executive branch powers to require and support domestic manufacturing of key goods. Catch up fast: The Commerce inquiry, set in motion by a petition from U.S. manufacturer Auxin Solar, explores whether China is circumventing tariffs via products assembled in Cambodia, Malaysia, Thailand and Vietnam. Read more.     2. Charting the plastics surge Data: OECD; Chart: Erin Davis/Axios Visuals Global plastic waste is set to nearly triple by 2060 without stronger environmental protections and steps to reduce demand, per a new report, Axios' Erin Doherty reports. Driving the news: About half of the plastic waste produced globally is expected to end up in a landfill and less than a fifth is expected to be recycled, the Organization for Economic Co-operation and Development found. Plus, plastic consumption is set to rise from 460 million metric tons in 2019 to 1,230 in 2060 without aggressive action to curb demand, the OECD estimates. Read the whole story.     3. CO2 eclipses alarming new benchmarks Data: NOAA and the Scripps Institution of Oceanography; Chart: Thomas Oide/Axios The level of carbon dioxide in Earth's atmosphere eclipsed a new benchmark this spring, reaching more than 50% above preindustrial concentrations, new data released Friday shows, Andrew writes. Why it matters: Carbon dioxide levels rose to a peak of 421 parts per million in May, breaking the symbolic 420 ppm barrier, according to the National Oceanic and Atmospheric Administration and the Scripps Institution of Oceanography. Threat level: Increasing CO2 levels are already having severe consequences. These include more frequent and extreme heat waves around the world, heavier precipitation events, stronger and wetter hurricanes, and more frequent and larger wildfires. At the start of the industrial revolution, CO2 levels were only around 280 ppm. The last time CO2 levels were this high was about 4.1 to 4.5 million years ago, a period when sea levels were high enough to swallow modern cities. The big picture: The pace of the increase in planet-warming gases is staggering compared to Earth's history, according to Pieter Tans, who tracks greenhouse gases for NOAA. Coming out of the last ice age, CO2 only went up by about 80 ppm during the course of 6,000 years, he told Axios in an April interview. Yet the 400 ppm milestone was eclipsed in 2013, and 440 ppm could be reached in another decade. Tans described the growth rate as "an explosion" from a geological perspective. Read more.     A message from ICE Volatile markets drive demand for RINs and RVO risk management     Renewable Identification Numbers (RINs) help track compliance with the U.S. Renewable Fuel Standard (RFS) program. Take note: RIN prices have been volatile, and there are risks of a reset of the entire RFS program this year. ICE's Global Head of Oil Market Research Mike Wittner analyzes the market.     4. On our radar: Climate, oil, SCOTUS 🌍 The latest UN climate talks get underway in Bonn, Germany, this week. It's one of the events leading up to higher-level talks at the next major summit in Egypt late this year. "The US envoy on climate change John Kerry has warned that the war in Ukraine must not be used as an excuse to prolong global reliance on coal," the BBC reports as the talks open. 🇪🇺 "European Union lawmakers have been inundated by lobbyists ahead of votes this week on more ambitious EU climate change policies, with some industries urging them to scale back the proposals." (Reuters) 🛢️ The U.S. Energy Information Administration will release its latest monthly outlook tomorrow, and we'll be watching for possible changes in domestic crude oil production forecasts. 👀 The Supreme Court will issue opinions later this morning and we're on the lookout for whether a major climate ruling will arrive.     5. ICYMI: Climate change hits home Illustration: Sarah Grillo/Axios   The newest stories in our Climate Truths Deep Dive series landed over the weekend and explore the local impact of climate change — and how communities are responding. The big picture: Whether it's increasingly common "sunny day flooding" in coastal cities, the growing frequency and severity of heat waves, wildfires out West and in Appalachia, or beach homes tumbling into the ocean during an ordinary coastal storm — we are already being forced to adapt our lives to global warming. Meanwhile, as Congress stalls on taking comprehensive action to limit global warming's severity, it is local policymakers — governors, mayors and city council members — who are acting with the most urgency. As communities try to cut emissions, they're also working to prepare for future global warming, from road-raising projects along the shoreline to city roofs painted white to reflect incoming heat from the sun. Check out the whole package.     A message from ICE Secure streaming data access in all market conditions     Against a backdrop volatility, an explosion of streaming market data message rates means many firms are challenged to find new ways to efficiently process information. What you need to know: Conflation can play a critical role. Learn why with insights from ICE.   🙏Thanks for reading and we'll see you back here tomorrow. Like this email style and format? It's called Smart Brevity®. 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