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A Wind Tax Credit, Indefinitely?

In last week’s State of the Union address, President Barack Obama called for doubling research and development funding for renewable energy. A policy document released by the White House following the State of the Union proposes making the wind production tax credit—which was renewed in January for one year as part of the deal to avert the fiscal cliff—permanent.

“To once again double generation from wind, solar and geothermal sources by 2020, the President has called on Congress to make the renewable energy production tax credit permanent and refundable, as part of a comprehensive corporate tax reform, providing incentives and certainty for investments in new clean energy,” the policy document states. Internal analysis by the American Wind Energy Association indicates phasing out the credit—over the course of six years—would give the industry the time it needs to establish a “stable base market” in the U.S.

But some in Congress have set their sights on challenging the tax credit and subjecting it to increased oversight.

According to the Federal Energy Regulatory Commission’s latest report, 100 percent of electricity capacity added in January 2013 was from renewables, with the majority coming from wind.

Vote Saves EU Trading Scheme, for Now

The world’s largest carbon market was saved from collapse this week. The European Parliament’s environment committee voted to support a proposed plan to remove a record surplus of emissions permits from their carbon trading scheme, which imposes emission limits on some 12,000 power plants and factories. The surplus—a result of the recession and factors such as an increase in carbon auctions—has driven carbon prices to an all-time low. The “backloading” plan delays the scheduled release of permits by up to five years. The vote did fail to provide a hoped-for boost to carbon allowance prices, which dropped 20 percent following the announcement.

The backloading plan still needs approval by the full European Parliament and the governments of the 27 member states.

Studies Put Arctic Ice Loss under Microscope

A reduction in summer Arctic ice cover reached a record low in 2012. But new research published in the journal Geophysical Research Letters suggests this melting doesn’t stop in cooler months. It finds sea ice volumes have declined 9 percent during the winter and 36 percent during autumn months over the course of the last decade.

This widespread reduction of ice is disrupting the balance of the region’s greenhouse gases. The melting affects both the uptake and release of gases such as methane and carbon dioxide, which can end up in the soil and cause lasting negative effects.

As the ice retreats and more shipping routes are opened, access for oil and gas exploration has also become easier. The United Nations Environment Programme says the region needs to be better protected as a result. Their report, UNEP Year Book 2013, recommends using economic instruments to create financial incentives that would improve chemical safety. A better understanding of how exploration would affect the region’s ecosystems and populations, Reuters reports, is also needed before taking further steps to develop the Artic.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.

Comments

  1. Ima Ryma
    February 22, 2013, 2:20 am

    Being just in its infant stage,
    Wind as a source of energy,
    Before it can become of age,
    Must heed that politics there be.
    D.C. will never let wind go
    Ahead to show what it can do,
    Without butt inning blow by blow
    With pork projects and cronies too.
    Tax credits – whether be or not,
    Depend on how pro winds do grease
    The palms of politicians bought,
    Renewables to never cease.

    The best source for producing wind?
    Congress – and not at all chagrined.