Inflation Reduction Act of 2022

Billions of federal tax dollars will soon be pouring into Louisiana to fight climate change, yet the projects they’re supporting may actually boost fossil fuels – the very products warming the planet. At issue are plans to build dozens of federally subsidized projects to capture and bury carbon dioxide from industries. On the surface, these projects seem beneficial. Keeping carbon dioxide out of the atmosphere prevents the greenhouse gas from fueling climate change. In practice, however, this may lead to a net increase in fossil fuel production and more emissions. That’s because many of these carbon capture projects will be handling emissions from facilities that rely on oil and natural gas – in fact, many of the projects are tied to major oil and gas companies through subsidiaries. Under new federal rules, the projects can receive generous tax subsidies. The more carbon dioxide the factories produce and capture, the more federal money the projects can r...

As government leaders and climate negotiators gather in Dubai for the COP28 United Nations climate conference, an enormous challenge looms over the proceedings: decarbonizing the global industrial sector. Industry has accounted for over 30% of total greenhouse gas emissions in recent years. It is the single largest emitting sector when accounting for its electricity use and heat generation. For countries to meet their goals to cut greenhouse gas emissions, stopping emissions from carbon-intensive industries like steel, cement and chemicals is imperative. There are promising technologies and innovations that can drive decarbonization in industry: green hydrogen fuel made from clean electricity and water, energy efficiency measures across supply chains, and carbon capture, use and storage to name a few. However, these solutions have yet to be deployed at the speed and scale required to slow global warming. Global industrial emissions will need to fall by 25% by 2030 for the...

Hydrogen, or H₂, is getting a lot of attention lately as governments in the U.S., Canada and Europe push to cut their greenhouse gas emissions. But what exactly is H₂, and is it really a clean power source? I specialize in researching and developing H₂ production techniques. Here are some key facts about this versatile chemical that could play a much larger role in our lives in the future. So, what is hydrogen? Hydrogen is the most abundant element in the universe, but because it’s so reactive, it isn’t found on its own in nature. Instead, it is typically bound to other atoms and molecules in water, natural gas, coal and even biological matter like plants and human bodies. Hydrogen can be isolated, however. And on its own, the H₂ molecule packs a heavy punch as a highly effective energy carrier. It is already used in industry to manufacture ammonia, methanol and steel and in refining crude oil. As a fuel, it can store energy and reduce emi...

The planet is heating up as greenhouse gas emissions rise, contributing to extreme heat waves and once-unimaginable flooding. Yet despite the risks, countries’ policies are not on track to keep global warming in check. The problem isn’t a lack of technology. The International Energy Agency recently released a detailed analysis of the clean energy technology needed to lower greenhouse gas emissions to net zero globally by 2050. What’s needed, the IEA says, is significant government support to boost solar and wind power, electric vehicles, heat pumps and a variety of other technologies for a rapid energy transition. One politically popular tool for providing that government support is the subsidy. The U.S. government’s new Inflation Reduction Act is a multibillion-dollar example, packed with financial incentives to encourage people to buy electric vehicles, solar panels and more. But just how big do governments’ clean energy subsidies need to be to...

With the U.S. government promising over US$360 billion in clean energy incentives under the Inflation Reduction Act, energy companies are already lining up investments. It’s a huge opportunity, and analysts project that it could help slash U.S. greenhouse gas emissions by about 40% within the decade. But in conversations with energy industry leaders in recent months, we have heard that financial incentives alone aren’t enough to meet the nation’s goal of reaching net-zero emissions by 2050. In the view of some energy sector leaders, reaching net zero emissions will require more pressure from regulators and investors and accepting technologies that aren’t usually thought of as the best solutions to the climate crisis. ‘Net-zero,’ with natural gas In spring 2022, we facilitated a series of conversations at Penn State University around energy and climate with leaders at several major energy companies – including Shell USA, and electric u...