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Nature vs. Tech; Clean Energy Tax Credits; Solar Bellwether Goes Bust
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Welcome back: Some estimates say the carbon-removal market could be worth $250 billion a year. But a shortage of investment, confusing policy and a lack of technological readiness are touted as issues holding the market back. Whether to back nature-based or technical solutions is another factor.
Technical or engineered solutions for carbon capture include direct air capture, enhanced rock weathering and biochar. Proponents say these methods are as good as permanent in terms of locking in atmospheric carbon. However, most of these technologies are still in testing, meaning getting them to scale quickly remains an issue. Credits can also be expensive, costing as much as $1,000 per ton of carbon removed.
Nature-based solutions include tree planting, regenerative agriculture practices and ocean-based solutions, such as capturing carbon through growing seaweed. Backers say locking in carbon through photosynthesis has existed in nature for millions of years, and can scale with ease. Credits are also much cheaper, at around $100. The issue is that some projects have high risk of “reversal” meaning that they might not deliver on their goals. Natural disasters such as wildfire or drought are also seen as a risk.
Now researchers say that it's a mistake to pit these two approaches against each other. Read on for more on this story and other sustainability news.
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Content from our sponsor: Deloitte
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How Double Materiality Can Help Catalyze Growth, Transformation
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Double materiality assessments highlight a dynamic relationship between sustainability reporting and value creation, each helping drive the other in a continuous loop of progress. Read More
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Pitting Nature Against Tech Is Wrong Say These Climate Researchers
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Direct air capture company Heirloom’s plant, in Tracy, Calif., showing trays holding treated limestone used to absorb carbon dioxide from the air. Photo: Heirloom Carbon/Reuters
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The fight against global warming should take a more unified approach to carbon removal that pursues both technical and nature-based solutions, researchers from some of the world’s largest companies, charities and leading academic institutions say, WSJ Pro Sustainable Business's Yusuf Khan writes.
In a paper published in the journal Climate Policy, researchers said that the current climate policy landscape, which pits engineered carbon-removal solutions such as capturing CO2 directly from the air against nature-based solutions such as reforestation, stifles investment and confuses policy.
“This binary approach that suggests that we have to choose between one or the other is not useful to achieve the goals of the Paris Agreement and the [climate] goals of companies,” said Charlotte Streck, co-founder and managing partner of Climate Focus, an international advisory company on climate policy, and the lead author of the research paper.
The paper includes contributions from researchers from the World Wildlife Fund, the Massachusetts Institute of Technology and Meta Platforms, among others.
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Tech Industry Fights to Save Clean-Energy Tax Credits
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Wind and other sources of renewable energy account for most of the near-term electricity generation likely to be added across the U.S. Photo: Kim Raff for WSJ
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The tech industry is fighting to save clean-energy subsidies in the tax-and-spending bill working its way through Congress, a sign that access to power is a priority for the biggest artificial-intelligence companies, the WSJ's Amrith Ramkumar and Jennifer Hiller write.
The Data Center Coalition, a group that includes Microsoft, Alphabet’s Google, Amazon.com and Meta Platforms, recently made its pitch in a letter to Senate Majority Leader John Thune (R., S.D.), according to a copy viewed by The Wall Street Journal. The group asked him to preserve tax credits and loan funding that would be aggressively phased out in the version of the bill passed by the House of Representatives last month.
The bill is fueling industry concerns about rising prices and power shortages if planned investments don’t materialize. But garnering enough Republican support to preserve the tax credits could prove difficult because of the party’s slim majorities in both chambers.
The Data Center Coalition discussed the topic with about 30 Republican senators, including Thom Tillis of North Carolina, Lisa Murkowski of Alaska and John Curtis of Utah, who have expressed support for the tax credits. Other groups that count big tech companies as members, including TechNet and the Clean Energy Buyers Association, have discussed saving the credits with the same lawmakers and have been encouraged by the talks, people familiar with the matter said.
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Bankruptcy of Solar Bellwether Shows Green Energy’s Trump Woes
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Workers install solar panels on a rooftop in Poway, Calif. Photo: Sandy Huffaker/Bloomberg
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One of America’s largest rooftop-solar installation businesses filed for chapter 11 Monday, a stark illustration of the strains haunting the U.S. clean-energy sector as shifting federal policies shake investor confidence, the WSJ's Jodi Xu Klein and Alicia McElhaney report.
Sunnova Energy International, once a poster child for America’s residential renewable energy boom with a market value above $5 billion and more than 400,000 customers at its peak, plans to sell or wind down its assets in bankruptcy. Now a penny stock with $8.9 billion in debt, Sunnova in recent months struggled to take on new business providing solar-panel installations, energy storage and financing for residential customers.
Weak demand, rising interest rates and a shifting government tone toward renewables have pummeled the solar energy sector, especially in recent months as Congressional leaders have moved to curtail incentives.
President Trump’s tax-and-spending package passed by the House sunsets certain tax credits for rooftop solar and battery storage, viewed by some analysts as a possible death knell for the solar industry. Further changes to the president’s “Big, Beautiful Bill” are likely in the Senate, where Republicans hold a 53-47 majority.
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IKEA store owner Ingka Group buys Dutch solar farms. (Dow Jones Newswires)
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BlackRock seeks dismissal of Texas antitrust case over coal production. (FT)
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Musk says he regrets some posts about Trump after explosive fallout. (WSJ)
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Amazon’s AWS says it is more than halfway to achieving 2030 water positive goal. (ESG Today)
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Swedish green steel maker mulls IPO to fund expansion. (Bloomberg)
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Barkbox apologizes for message suspending Pride marketing. (WSJ)
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Stella McCartney’s $1,500 ‘leather’ purse made from fungus. (Trellis)
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Older companies are surprisingly more sustainable than younger ones. (Anthropocene)
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Maps reveal best opportunities for global reforestation. (Guardian)
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This runner was bothered by blizzard of disposable cups at races. She invented something better. (AP)
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CONTENT FROM OUR SPONSOR: DELOITTE
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Colt’s CEO on Making Growth ‘Sustainable by Design’
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Colt Technology Services Group CEO Keri Gilder discusses how sustainability initiatives are helping the company connect with employees to help drive growth, and the important support she gets from the finance team. Read more.
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