Good morning! Welcome back to Energy Source, broadcasting from New York, where we’re wrapping up an exciting Climate Week. This event is drawing more attention than COP29, with many attendees choosing New York over the UN climate summit in Azerbaijan.
The upcoming November US election looms over this gathering, particularly the prospect of Donald Trump returning to office. Trump has often downplayed climate change, criticized Biden’s renewable energy tax credits, and expressed support for continued fossil fuel drilling to lower energy costs.
In this edition of Energy Source, we speak with Andrés Gluski, the CEO of AES, a major renewable energy developer in the US. He shares his insights on how a second Trump presidency could affect the competitiveness of the US energy sector.
Thanks for joining us!
Andrés Gluski warns that Trump’s plan to impose more tariffs on Chinese products and eliminate federal green subsidies could significantly harm US competitiveness. He argues that these policies would be detrimental, especially in light of the technological advancements in AI and the push for industrial growth within the states.
Gluski’s comments align with concerns from various green technology leaders, who believe that another Trump administration could hinder the transition to renewable energy and the US’s ambitions to rival China in this sector.
On the campaign trail, Trump has pledged to cut spending related to Biden’s Inflation Reduction Act. This act includes substantial investment aimed at accelerating renewable energy projects and building a local supply chain for clean technologies.
Trump’s approach to US manufacturing involves proposing a “new American industrialism,” which would include tax breaks and tariffs of up to 20% on imports, particularly on goods from China—one of the leading producers of clean energy components.
Additionally, Kelly Speakes-Backman, a former Biden administration energy official and executive VP at Invenergy, warns that the tariffs Trump supports could lead to higher energy costs for consumers. She points out that while Americans desire clean energy, meeting that demand might become more challenging and costly.
The Clean Investment Monitor indicates that the manufacturing investment in clean technology has skyrocketed, growing over four times in the last two years since the IRA was implemented, while investments in clean energy have risen by 43%.
Fossil fuel leaders are supportive of Trump’s policies as they believe this would unleash their industry’s potential. Meanwhile, some clean energy executives express skepticism about how much impact Trump could have in a second term, given the ongoing decline in clean energy costs and the extent of projects driven by the IRA, many of which are located in Republican districts.
Internationally, Matthew Bell from EY notes that despite Trump’s potential policy changes, the US will still be impacted by a global shift toward decarbonization. He argues that the US could end up becoming less competitive on the world stage, which would not be beneficial in the long term.
As we close, here are some recent job updates in the sector:
- Trafigura has appointed Richard Holtum as CEO, stepping in for Jeremy Weir.
- ExxonMobil welcomes Sasha Mackler as global head of strategic policy for its low-carbon solutions division.
- The Global Wind Energy Council has named Rebecca Williams as deputy CEO and Stewart Mullin as chief industry officer.
- Shameek Konar, formerly of Pilot, will lead the new decarbonization division at Ara Energy.
- Anne Hawke, previously with the Natural Resources Defense Council, is joining the US Department of the Interior as deputy communications director.
- Paul Dobson will take on the role of CFO at EVGo, joining from Ballard Power Systems.
Stay tuned for more updates in the energy sector!