Thursday, May 18, 2023

Frenemies, the U.S.-China edition

Presented by Chevron: Your guide to the political forces shaping the energy transformation
May 18, 2023 View in browser
 
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By Arianna Skibell

Presented by Chevron

Energy Secretary Jennifer Granholm.

Energy Secretary Jennifer Granholm on Capitol Hill earlier this year. | Francis Chung/POLITICO

The United States should develop its own clean energy supply “soup to nuts” — but that doesn’t mean banning Chinese products, a top Biden administration official said today.

At POLITICO's first-ever energy summit, Energy Secretary Jennifer Granholm stressed the importance of U.S.-based manufacturing for an emerging industry that includes electric cars, batteries and solar panels. The idea is to create jobs, while shifting the pendulum away from Chinese-dominated clean energy markets.

“We want to be able to have our own energy security here,” she said (after anti-pipeline protesters were wrestled away from the stage). "At the same time, the administration has taken some steps that would allow Chinese companies and Chinese goods to enter the market."

Sharon Burke, who worked on energy and climate issues in the Obama administration, said even if the administration wanted to, the U.S. is too reliant on China to fully decouple the economies.

“Right now, the legacy economy is a global market, and we can’t decouple even if we wanted to,” said Burke, who now heads the research and advisory firm Ecospherics.

That won’t stop Republicans from trying, however. The complex dynamic has provided grist for GOP lawmakers to attack President Joe Biden’s climate policy and U.S. companies doing business with China.

The administration has also weathered bipartisan criticism. Twenty-one Democrats joined Republicans last month in a vote to reinstate an import tariff for solar equipment that they saw as benefiting China. (Biden vetoed the resulting bill last week.)

That power struggle could threaten the fight against climate change, write Sara Schonhardt and Phelim Kine.

As the U.S. invests billions into moving away from fossil fuels, it’s also trying to wean itself off China for clean energy gear like solar panels and battery technology. But if the U.S. and China divvy up markets and try to box out their rivals, that could take entire supply chains out of circulation and slow global efforts to combat the climate crisis.

For example, competition between the two superpowers could complicate financing opportunities for African and Asian countries that rely on U.S. funding and China’s loan programs to transition away from burning fossil fuels, write Sara and Phelim.

The battle for dominance has already implicated businesses large and small. Republicans have criticized Ford Motor for licensing technology from a China-based producer of electric vehicle batteries, while local solar panel installers are threatened by the bipartisan effort to restore tariffs on Chinese-made materials. State and local governments, along with U.S. companies, also face potential political backlash if they work with Chinese companies to build clean-energy factories in the United States.

The dynamic is also creating headaches overseas with European countries angry at Washington’s protectionism.

 

It's Thursday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net.

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Today in POLITICO Energy’s podcast: Gloria Gonzalez breaks down the arguments about how Puerto Rico should spend $14 billion from Congress to repair its troubled grid.

 

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We’re working to help lower the lifecycle carbon emissions of transportation fuels. Find out how Chevron’s renewable diesel can help fuel the way to a lower carbon future.

 
Power Centers

Transmission tower, thermometer, heat collage

Claudine Hellmuth/E&E News (illustration); Lindsey White/Pixabay (thermometer); S. Nagel/Pixabay (transmission tower)

Cruel summer
The nation's grid reliability monitor has warned that two-thirds of North America could face power shortages this summer during periods of extreme electricity demand and spiking temperatures, writes Peter Behr.

The North American Electric Reliability Corp. found that the number of regions with an “elevated risk” of power shortages has increased as temperatures rise and power plants retire.

Inside the laboratory
Scientists and engineers are flocking to a small lab in Michigan to test out new EV technology, writes Hannah Northey.

The lab at the University of Michigan is one of the few centers that allows nearly any battery scientist to test out the latest technologies, giving it an outsize role in the race to electrify transportation.

Nord Stream fallout
The UK and Norway have signed a security partnership to prevent attacks against undersea infrastructure including natural gas pipeline and cables, writes Cristina Gallardo.

The agreement comes after last year's attacks on the Nord Stream gas pipelines in the Baltic Sea. Swedish investigators said last month that a state actor was most likely responsible for the blasts, but that the incident remained “difficult to investigate.”

 

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In POLITICO summit news

Attracting the best and brightest: The Energy Department official overseeing the Biden administration’s vast portfolio of clean-energy loans defended the department’s processes and goal of attracting foreign direct investments.

Nuclear notice: Democratic New Mexico Gov. Michelle Lujan Grisham put the Biden administration on notice that she will use “every tool” in her toolbox to block attempts to build interim storage of nuclear waste in her state.

 

DON’T MISS POLITICO’S HEALTH CARE SUMMIT: The Covid-19 pandemic helped spur innovation in health care, from the wide adoption of telemedicine, health apps and online pharmacies to mRNA vaccines. But what will the next health care innovations look like? Join POLITICO on Wednesday June 7 for our Health Care Summit to explore how tech and innovation are transforming care and the challenges ahead for access and delivery in the United States. REGISTER NOW.

 
 
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People sleep in the shade of a bridge in New Delhi last year.

People sleep in the shade of a bridge in New Delhi during a deadly heat wave in India last year. | Manish Swarup/AP Photo

A heat wave in South Asia last month intensified to record-shattering levels because of climate change.

The Interior Department approved the right of way for the SunZia Southwest transmission project, which has taken more than a decade and a half to get the green light.

The departments of Energy and Transportation will spend millions of dollars and recruit federal scientists in an effort to make the nation's EV chargers reliable.

That's it for today, folks! Thanks for reading.

 

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Renewable fuels can help lower lifecycle carbon emissions in industries around the world. At Chevron, we’re working to bring more renewable fuels to vehicles, today. Our renewable diesel can fuel trucks, trains, heavy-duty vehicles, and more, without requiring new equipment or infrastructure. The fuel—which is made with bio feedstock—has lower carbon intensity than regular diesel. It’s just one of the ways Chevron is committed to increasing our renewable fuel production, and fueling a lower carbon world. Find out more about our renewable diesel.

 
 

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