Tag: clean energy
Trump Is Accelerating The Green Energy Transition Everywhere But Here

Trump Is Accelerating The Green Energy Transition Everywhere But Here

The war in Iran has shifted the green transition into hyperdrive. Soaring oil and gas prices, coupled with the clearest possible demonstration of ongoing political risk, has shown the world the desirability and need to move rapidly to clean energy, even apart from global warming.

BYD, China’s leading car maker and producer of electric vehicles, shows the Trump effect most clearly. Its August sales were more than 130% above their year-ago level. Apparently, they would have been even higher if they were not constrained by shipping capacity. The company is now projecting overseas sales of 2.5 million for 2027, almost 2.5 times the 2025 level. It has plants now operating in Brazil and Indonesia and will have one in Hungary before the end of the year. EVs are now nearly 70 percent of the Chinese car market, by far the largest market in the world.

As I noted before, the shift to EVs is largely a one-way street. People who buy EVs rarely switch back to gas-powered cars. That means the shifts we’re seeing now will be enduring and built on in future years. As EVs become more common, the infrastructure to support them gets built out. Also, more people will recognize the benefits of EVs when they see friends, neighbors, and co-workers driving cars with lower fueling and maintenance costs.

And EVs keep getting cheaper and charging times shorter. This will push even more people to opt for EVs.

There is a similar story with solar and wind power. China has been adding wind and solar on a massive basis for several years. It will add more than 140 gigawatts of electricity capacity this year, an amount that is roughly equal to 10 percent of total U.S. electric capacity. In addition, its wind generation capacity is rising by close to 80 gigawatts in 2026.

Many developing countries are now also rapidly adding clean energy. Pakistan now gets 25 percent of its electricity from solar. India’s orders of solar panels from China increased by 150 percent from February to March. Nigeria and other countries in Africa are also speeding towards solar, with imports from China rising 176 percent.

The economics of clean energy keep improving. In addition to the price declines for EVs, which already cost far less than cars in the United States, the price for batteries for storing energy is also plummeting. It has fallen by more than 75 percent in the last decade. And the rapid pace of price decline is likely to continue, especially as sodium batteries displace lithium ones. Sodium is cheap and plentiful and has features, like better safety and performance in cold weather, that make it more desirable for many purposes than lithium.

Even ignoring the impact on global warming, which would be crazy in this year of record temperatures and devastating wildfires, clean energy would be dominating fossil fuels on narrow economic considerations. The transition was already happening largely for this reason, but Trump and Netanyahu’s war on Iran undoubtedly hastened the pace. Donald Trump’s America may be in last place, but that won’t change the direction the train is going.

Dean Baker is a senior economist at the Center for Economic and Policy Research and the author of the 2016 book Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. Please consider subscribing to his Substack, from which this is reprinted with permission.


Orange Man Goes Green? How Trump's Attack On Iran Is Advancing Clean Energy

Orange Man Goes Green? How Trump's Attack On Iran Is Advancing Clean Energy

Donald Trump has an incredibly childish obsession with outdoing his predecessors, who he constantly derides as stupid and corrupt. There is, of course, no evidence for Trump’s charges, like the supposedly terrible economy he inherited from Biden, but Donald Trump is not a man who feels constrained by reality.

While Trump does everything he can to reverse policies to promote clean energy, overturn trade agreements (including his own), and undermine security pacts, there is one area where Trump looks to substantially outpace the work of his predecessors.

This is in promoting the transition to a non-fossil fuel-based economy. As much as Trump loves oil and coal and seems to relish the prospect of destroying the planet for our kids, his reckless attack on Iran will do a hundred times more to promote clean energy worldwide than all the incentives in Biden’s Inflation Reduction Act.

There is both the direct effect of higher oil and gas prices resulting from the closing of the Straits of Hormuz, but also a more important indirect effect. Trump has shown the world that it is dangerous to rely on imported oil and natural gas as energy sources.

This applies not only to imports from the Middle East, which apparently any jerk can shut down on a whim. The risks probably apply even more strongly to reliance on the United States as an exporter, Trump’s preferred outcome.

In his tariff games, Trump showed he can be incredibly arbitrary and capricious. He claimed that countries were “ripping us off” because they sell us stuff. There is nothing resembling logic to Trump’s claim. Do Walmart or Costco rip people off when they buy things from those stores?

But it gets worse. He imposed 50 percent tariffs on Brazil’s exports because it prosecuted Trump’s friend for trying to overthrow the government. India also faces 50 percent tariffs on its exports to the U.S. because its prime minister refused to nominate Trump for a Nobel Peace Prize. And Switzerland got hit with a 39 percent tariff because Trump didn’t like the way its president talked.

The rest of the world would likely much rather take its risks with countries like Iran and Libya than rely on getting oil and gas from Donald Trump’s America. At least there is usually some logic to when these countries threaten to reduce output or raise prices.

The rise in oil and gas prices following the closure of the Straits is making clean energy far more competitive than was already the case. Even with oil at $60 a barrel, and natural gas correspondingly cheap, the vast majority of electricity coming on-line across the globe was renewable. This shift will only accelerate, with oil prices up 70 percent and natural gas having close to doubled. While prices may fall back some if the Straits are reopened soon, they are unlikely to return to their pre-war levels for several years in almost any circumstances.

And the price of wind and solar energy continues to fall, driven primarily by low-cost Chinese manufacturers. Chinese electric vehicles will also become hugely more popular as a result of Donald Trump’s war. These cars are already cheaper to purchase than comparable traditional cars, and Trump has just added roughly $500 a year to the operating cost of a gas-burning vehicle. Already 60 percent of the cars sold in China are electric, with EVs holding a comparable share in Europe. The same is the case in many developing countries. The EV share will likely quickly move towards 100 percent thanks to Trump’s war.

It certainly was not the best way to promote a green transition, but no one can deny that Trump’s war is effective. Who knows how much damage the war will ultimately cause in terms of property destruction, the environment, and lives lost. The latter will include both direct effects from the war and likely much larger indirect effects from higher energy and food prices. But one positive outcome is that we will be moving far more rapidly toward a green economy.

Dean Baker is a senior economist at the Center for Economic and Policy Research and the author of the 2016 book Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. Please consider subscribing to his Substack.

Reprinted with permission from Dean Baker.


Behind Trump's Attacks On Clean Energy Lie Corruption -- And Masculine Insecurity

Behind Trump's Attacks On Clean Energy Lie Corruption -- And Masculine Insecurity

We are now in a global fossil fuel crisis. With oil and liquefied natural gas from the Persian Gulf unable to reach international markets due to Iran’s blockade of the Strait of Hormuz, hydrocarbon prices have been soaring around the world and widespread shortages are emerging. Anyone who thought that the U.S. would be insulated from this dire picture thanks to its large domestic oil production has had a rude awakening: the average retail price of gasoline has risen more than $1 per gallon over the past month, while the price of diesel is up $1.60.

But the Trump administration hasn’t allowed these short-run distractions to divert it from its long-run goals: It remains deeply committed to killing renewable energy, especially wind power, and increasing America’s reliance on fossil fuels.

True, some of the administration’s attacks on wind power have failed: Its efforts to throttle offshore wind development by ordering developers to stop work on projects that are already underway have repeatedly been overruled by the courts. But the administration is continuing to block development of onshore wind and solar power by freezing the issuance of federal permits.

And on Monday the Interior Department unveiled a new tactic in its war on wind: It announced that it will pay TotalEnergies, a French energy giant, almost $1 billion to not produce energy — specifically to abandon its plans to build two large wind farms off the East Coast.

To understand the Trump administration’s motives in its campaign to kill renewable energy, one must realize that this campaign is both economically self-destructive and, despite the best efforts of the fossil fuel industry, deeply unpopular.

Fifteen years ago wind and solar power were still relatively marginal energy sources, which those hostile to their development could portray as unproven and uneconomic. Today they are major contributors to energy supply in many nations — and in some U.S. states. Perhaps most notably, as the chart at the top of this post shows, renewables — mostly wind, but with a growing role for solar — now account for more than a third of electricity generation in Texas, America’s largest producer of electricity and not exactly a state run by environmental extremists.

Even more impressively, renewables have dominated the growth in Texas’s electricity generation in recent years:

You almost have to admire the administration’s persistence, its determination to turn back the clock on energy even though renewables are big business, its tenacity in trying to block new, secure energy sources even in the face of a global energy crisis. But what’s this all about?

The administration has argued that offshore wind farms are a threat to national security, supposedly interfering with radar. But that doesn’t explain the efforts to block onshore wind and solar, and the courts have remained unconvinced. In announcing the buyoff of TotalEnergies, the Interior Secretary claimed that wind power is expensive and unreliable; but in that case why is it necessary to pay private companies not to develop it?

Campaign finance is part of the story. At this point, political contributions from fossil fuel companies go almost entirely to the GOP, while alternative energy favors Democrats.

Beyond campaign finance, fossil fuel interests, especially but not only the Koch brothers, have spent many decades promoting hostility to renewable energy and any effort to mitigate climate change. They have done so by every means possible, including faux environmentalism. When Donald Trump makes bizarre claims about how wind power is massacring birds and “driving whales crazy,” he’s getting his fantasies, whether he knows it or not, from the fossil-fuel propaganda machine.

Now, this long-term project has had limited success at moving the broader public, which remains favorably disposed toward renewable energy. In fact, as late as 2020 large majorities of rank-and-file Republicans held favorable views of both solar and wind power. Those views have shifted against renewables in Trump’s second term, but even now they aren’t nearly as extreme as the views of the Trump administration. And according to Pew, a substantial majority of Americans still believes that promoting wind and solar is “a more important priority” than promoting fossil fuel production.

But the right-wing elite is completely anti-renewable.

In large part this reflects long-term indoctrination by fossil-fuel backed think tanks and media. In addition, however, to make sense of the right-wing elite’s intense hostility to renewable energy one needs to think about psychology (psychology that the fossil fuel cabal exploits.)

Bear in mind that on the political right wind and solar power are routinely condemned as “woke.” Real men burn stuff.

What this reflects, I believe, is a common factor underlying many right-wing obsessions. Why cling to fossil fuels in the face of a technological revolution in energy? Why valorize “warrior ethos” and bulging biceps in an age of drone warfare? Why build economic policy around a doomed attempt to bring back “manly” jobs? At a deep level, I’d argue, it’s about nostalgia for an imagined past in which brawn mattered more than brains, combined with, yes, a hefty dose of insecure masculinity.

The world keeps declining to cooperate with these macho dreams. Tariffs aren’t bringing back blue-collar jobs. Setting out to “destroy the enemy as viciously as possible” — as Pete Hegseth said Tuesday — isn’t winning an easy victory over Iran. And turning our back on the energy revolution, even paying the private sector to reject new technology, means both making America less secure and ceding the future to other countries that aren’t ruled by MAGA’s obsessions.

But that appears to be a price both fossil fuel interests and the Trump administration are willing to pay.

Paul Krugman is a Nobel Prize-winning economist and former professor at MIT and Princeton who now teaches at the City University of New York's Graduate Center. From 2000 to 2024, he wrote a column for The New York Times. Please consider subscribing to his Substack.

Reprinted with permission from Paul Krugman.

Nation's Electric Bill Jumped In 2025 Despite Trump's Promise To Slash Cost

Nation's Electric Bill Jumped In 2025 Despite Trump's Promise To Slash Cost

During his 2024 campaign, President Donald Trump repeatedly promised that if voters returned him to the White House, his policies would quickly slash everyone’s energy bills in half. A new congressional report, however, finds that the average American family is paying more in electricity costs than before Trump’s second presidential term.

In a report released on March 17, the minority staff of Congress’ Joint Economic Committee says that the average American household’s total annual electric bill rose by $110 between 2024 and 2025, a 6.4 percent increase.

Offering few specifics as to how, Trump told the Economic Club of New York in September 2024: “My plan will cut energy prices in half or more than that within 12 months of taking office. It will be an economic revival of our country like no one has ever seen before. Energy was what caused our problem initially. Energy is going to bring us back. That means we’re going down and getting gasoline below $2.00 a gallon, bring down the price of everything from electricity rates to groceries, airfares, and housing costs.”

Under President Joe Biden, Congress passed the Inflation Reduction Act and the Infrastructure Investment and Jobs Act, both of which included significant federal investments in clean energy infrastructure. The Inflation Reduction Act included billions of dollars in tax credits to lower clean energy costs for consumers and help make their homes more energy-efficient.

Since taking office, Trump has worked to undo as many of those provisions as possible, halting solar and wind energy projects, canceling $8 billion in clean energy projects, and repealing much of the unspent Inflation Reduction Act money for clean energy.

At the same time, Trump’s tariffs on imported goods, grid damage spurred by climate change, and increased power demands from data centers have made electricity more expensive.

“American families don’t need a report to tell them that the President has broken his campaign promise to slash energy costs; they already feel the impact of President Trump’s actions every single day. But this report is yet another indication that sky-high costs are continuing to rise – and are continuing to hurt American families,” said the Joint Economic Committee’s ranking member, New Hampshire Democratic Sen. Maggie Hassan, in a statement.

A White House spokesperson did not immediately respond to a request for comment for this story.

In Virginia, for example, families saw their electricity bills increase 9.5 percent, paying $170 more in 2025.

According to the U.S. Energy Information Administration, average national gasoline prices have not dropped below $2.00 in any week since Trump returned to the White House. The lowest price was $2.779 in January.

According to American Automobile Association data, the average cost of a gallon of regular gas in Virginia rose from $2.823 a month ago to $3.634 following Trump’s launch of military strikes on Iran.

Reprinted with permission from The American Independent

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