financial

Wed, 2013-01-02 11:02Farron Cousins
Farron Cousins's picture

Wind Tax Credit Avoids The Fall Over The Fiscal Cliff

The U.S. government has managed to postpone financial calamity for a few months with the passage of a so-called “fiscal cliff” deal.  While the deal is hardly anything to celebrate in the larger scheme of things, it did provide a one-year extension for a critical clean energy mechanism – the wind energy production tax credit.

The credit has been in jeopardy since it was first introduced, with Republicans in Washington threatening to kill the tax credit, citing its estimated cost of $12.1 billion over the next decade as too costly.  However, the credit breaks down to a mere 2.2 cents per kilowatt hour of wind energy produced in America, making it one of the cheapest subsidies approved for energy projects.

The extension of the credit comes at the perfect time, as the United Nations recently released a report detailing the ways in which climate change could cause financial disasters across the globe.

Among the more dire warnings in the U.N. report is the threat of water scarcity, which could devastate commodity markets, as agriculture would take a massive hit and crops would be decimated.  So while the United States might have postponed the drop over the fiscal cliff, the threat of the environmental and climate change cliff is very real, and very much in need of addressing. 

The wind production credit extension will keep the tax credit alive for the year 2013, which wil help wind energy companies to resume growing and to hire back workers laid off in the past year. Its fate after that remains unclear.

Sun, 2007-04-15 17:29Emily Murgatroyd
Emily Murgatroyd's picture

Do Nothing, Risk Everything

A recent report published in March by the Ethical Funds Company found that out of 48 Canadian oil and gas companies studied, only 2 were responding in any meaningful way to address the risks associated with global warming; Shell Canada and Suncor.

Using a wide variety of sustainability metrics, EFC scored each company to determine how well they are prepared to meet the increasing demand for environmentally and sustainably sound practices in the oil and gas sector as it becomes more and more clear that climate change is a reality and will have a significant effect on operations and investor relations.

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