Since the onset of the COVID crisis, economic stimulus has been re-framed as roadmaps to ‘green recovery’ or ‘building back better’. The question is whether these ideas are useful for India, especially when it is facing a longer road out of the pandemic than previously thought. Evidence supports that they are relevant, for three reasons.
Read MoreThis week, ExxonMobil estimated that methane leakage from its oil and gas oil field activities should fall by 30 percent by 2025 –contributing to a total decline of 12 percent company wide -- as it brings its overall carbon intensity targets for methane and flaring emissions down 40 to 50 percent. That target is unacceptably modest, even compared to its peer oil companies. But ExxonMobil’s lack of climate ambition is symptomatic of a larger problem. The United States and Europe will need to align methane policies.
Read MoreDenmark’s announcement that it will phase out oil and gas production in its waters by 2050 and cancel all future licensing of acreage for oil and gas exploration may be symbolic given the country’s shrinking number of prospective areas but it is significant nonetheless. It is the largest oil and gas producer to set a firm end date for oil and gas development and builds on a trend of developed nations working towards ending oil exploration within their national borders including New Zealand, France, and Belize. The Danish decision will add pressure to other countries like Norway to rethink their oil and gas policies in the wake of commitments to climate change action. Several oil producing countries have failed to generate strong interest in auctions for exploration licenses recently amid flagging oil prices, including notably Brazil whose offering of exploration acreage failed to attract bids from the international oil majors in late 2019.
Read MoreChina’s leaders are meeting this week to set the country’s long-term goals. An important element of the process will be the country’s next Five-Year Plan (FYP), which provides a roadmap and window into China’s vision for itself and its economy. This year’s FYP is particularly significant for the world because it will explain how the Chinese government plans to reach its newly announced target of zero net carbon emissions by 2060. Previous plans have emphasized the need for China to promote technology innovation self-sufficiency including in the important area of energy as well as to set targets for non-fossil energy, energy efficiency, coal caps, and carbon intensity. New energy technology, including electric and automated cars, renewable energy, and batteries, featured widely in China 2025, the country’s widely disseminated industrial plan. China’s 12th FYP targeted new energy vehicles as one of seven strategic industries, allocating billions of dollars to their development and promotion.
Read MoreIt’s been over ten years since the 2009 financial crisis economic stimulus packages targeted clean energy companies and today’s headlines highlight the payoff. Clean energy companies outperformed the S&P 500 in 2019 and looks poised to payout even more to investors in 2020. Tesla received a $465 million federal loan during the U.S. 2009 stimulus to design electric vehicles and begin manufacturing and its market capitalization surpassed that of ExxonMobil earlier this year. Tesla is not the exception to the rule. A comprehensive study of the US Department of Energy’s SBIR grant program found that the awards led to positive impacts on patenting and revenue innovative companies.
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