Articles tagged with "subsidies"
Fossil Fuel Subsidies Are Just Stupid — Bloomberg - CleanTechnica
The article highlights the detrimental impact of fossil fuel subsidies, emphasizing their role in exacerbating climate change and public health crises. Researchers at Imperial College London report that climate change-driven summer heatwaves caused an estimated 16,469 additional deaths across 854 European cities, accounting for nearly 70% of summer heat deaths. Climate scientist Friederike Otto underscores the direct causal link between fossil fuel burning, rising temperatures, and increased mortality, noting that many of these deaths could have been prevented without continued fossil fuel use. In the United States, fossil fuel subsidies have more than doubled over the past eight years, reaching nearly $35 billion annually, according to a study by Oil Change International. This increase has occurred under both Democratic and Republican administrations, reflecting the political challenges in curbing these subsidies. The article criticizes these subsidies as "welfare" for a profitable, polluting industry, arguing they are counterproductive amid urgent needs for clean energy investment. Recent legislation, including the expansion of the Section 45
energyfossil-fuelsclimate-changesubsidiesclean-energyenvironmental-policyglobal-warmingUS Taxpayers Will Pay Billions in New Fossil Fuel Subsidies Thanks to the Big Beautiful Bill
A recent report reveals that the Trump administration has introduced nearly $40 billion in new federal subsidies for oil, gas, and coal in 2025 through the One Big Beautiful Bill Act, increasing annual fossil fuel subsidies by about $4 billion over the next decade. This addition raises the total federal support for domestic fossil fuels to at least $34.8 billion per year, marking the largest single-year increase in fossil fuel subsidies since at least 2017. These subsidies build on longstanding tax breaks, some dating back over a century, such as the 1913 deduction for drilling expenses, highlighting the entrenched nature of fossil fuel support in U.S. policy. Efforts to reduce fossil fuel subsidies have faced significant political obstacles. Although President Biden initially pledged to eliminate certain fossil fuel tax breaks to raise $35 billion over ten years, these plans were abandoned during climate legislation negotiations with Senator Joe Manchin, a key swing vote with ties to the coal industry. The resulting Inflation Reduction Act of 2022
energyfossil-fuelssubsidiesoil-and-gascarbon-captureclimate-policyrenewable-energyThe Great Hydrogen Fleet Flip: Nikola’s Collapse Fueled A New Subsidy Play - CleanTechnica
The article "The Great Hydrogen Fleet Flip: Nikola’s Collapse Fueled A New Subsidy Play" from CleanTechnica examines how former Nikola executives have reemerged through Hyroad Energy to continue pursuing hydrogen trucking ventures despite Nikola’s bankruptcy. These executives, who previously secured hundreds of millions in grants and investments for Nikola’s hydrogen truck ambitions, are now acquiring subsidizable hydrogen assets at steeply discounted prices. They repackage these assets as part of a new “fleet transformation” narrative to tap into fresh public funding, even though the fundamental technical challenges, high costs, and limited market demand that doomed Nikola remain unresolved. Hyroad Energy, prior to acquiring Nikola’s assets, had received over $9 million from Texas’s THIVE program to deploy hydrogen Class 8 trucks but had no public record of operating such vehicles. The Nikola assets, originally valued at over $50 million, sold for less than 8% of that amount, highlighting the lack of a viable secondary market for hydrogen trucks. The article
energyhydrogen-fuelclean-energytruckingsubsidiesdecarbonizationfleet-transformationRepublican Hopes for the Musk–Trump Collab Have Proven Unrealistic - CleanTechnica
The article from CleanTechnica analyzes the impact of Elon Musk’s political alignment on Tesla’s consumer base, particularly focusing on Republican hopes that Musk’s far-right political stance would expand Tesla’s market among conservatives. While Musk’s political actions have alienated many Democratic customers, the anticipated increase in Republican Tesla buyers has not materialized. A recent study shows that conservative interest in purchasing electric vehicles (EVs), including Teslas, has remained largely unchanged despite Musk’s political positioning, while Democratic interest has significantly declined. Consequently, Tesla sales have dropped rather than increased. Furthermore, the article highlights broader negative consequences for the EV market and clean energy policies linked to this political shift. Key government subsidies for electric cars have been cut, support for EV infrastructure has weakened, fuel economy standards have been reduced, and tariffs on EV components have been imposed. These developments, combined with Musk’s public falling out with Donald Trump, undermine any expectation that the Trump administration would favor Tesla. The author concludes that Musk’s decision to embrace
energyelectric-vehiclesTeslaEV-adoptionclean-energyautomotive-industrysubsidiesIn Trump’s "Big Beautiful" Bill, Ugly Contradictions & Giveaways to Oil & Gas Industry - CleanTechnica
President Trump’s $4 trillion “Big Beautiful” spending bill, signed on July 4, contains significant contradictions regarding energy and climate policy. Despite Trump’s skepticism about climate change, the bill increases federal subsidies for carbon capture projects, but only if the captured gas is used to enhance oil and gas extraction. The legislation cuts support for wind and solar energy—some of the cheapest energy sources—leading to an expected rise in average household energy costs by about $280 annually. It also phases out subsidies for electric vehicles, clean energy, and energy-efficient appliances, while providing substantial tax breaks and subsidies to the oil and gas industry. Key giveaways to fossil fuel companies include a reduction in royalty rates for drilling on public lands from 16.7% (set by the Inflation Reduction Act under Biden) to 12.5%, and the requirement for the Department of the Interior to conduct at least 30 offshore lease sales in the Gulf of Mexico, offering a minimum of 80 million acres each. The bill
energyoil-and-gascarbon-capturesubsidiesfederal-landsdrilling-rightsclimate-policyHow Republican Policies to Kill EV & Solar Incentives Could Lead to More EV & Solar Sales — With 1 Critical Component - CleanTechnica
The article discusses the recent Republican-led removal of key electric vehicle (EV) and solar subsidies established by the 2022 Inflation Reduction Act, which is expected to slow growth in these sectors in the U.S. and cause the country to lag behind Europe and China. Despite this, the author suggests that the phaseout of incentives could paradoxically spur a surge in EV and solar adoption in the short term, as consumers and developers rush to take advantage of remaining tax credits before they expire—such as the solar investment tax credit available through 2025 and the EV $7,500 credit ending September 30. This creates a temporary market boost prior to the subsidy removal. A critical condition for this scenario to ultimately benefit the clean energy transition is that Democrats must regain control of Congress and the White House to reinstate these incentives in the future. The article argues that the temporary removal of subsidies could push automakers and solar developers to reduce costs and become more competitive, preparing the market for a stronger resurgence when
energyelectric-vehiclessolar-powersubsidiesInflation-Reduction-Actclean-energyrenewable-energyMusk's Long Term Plans Are Really Far Out - CleanTechnica
The article discusses Elon Musk's complex and often contradictory approach to his long-term plans and public persona. While Musk is known for impulsive decisions and contentious interactions—such as his rejected offer to assist in the Thai cave rescue and his public feud with former President Donald Trump—his long-term vision remains highly calculated, blending his unique worldview with data-driven insights and automation. Recently, Musk has escalated political involvement by launching a new political entity, the America Party, pledging support to select candidates, and criticizing legislation like the Senate’s Build Back Better bill for harming future industries. Musk's public disputes and erratic behavior have impacted the brands he leads, notably Tesla, SpaceX, and others. Institutional investors have expressed serious concerns about Tesla’s stock volatility, declining sales, and reputational issues linked to Musk’s actions outside his CEO role. A group holding 7.9 million Tesla shares called for reforms including clearer CEO time commitments, succession planning, and governance improvements to address these challenges. Overall
energyelectric-vehiclesTeslasubsidiesautomationself-driving-carsElon-MuskBest Cage Match Ever: Tesla CEO Takes On US President
The article details the escalating conflict between Tesla CEO Elon Musk and US President Donald Trump, highlighting how their personal and professional clashes have begun to impact Tesla’s brand reputation amid a challenging market environment. The tension intensified after Musk criticized Trump’s tax legislation, known as the “Big Beautiful Bill,” and reportedly left his White House role as head of the Department of Government Efficiency (DOGE). Trump responded on social media by accusing Musk of receiving excessive subsidies and suggested Musk should return to South Africa, threatening to use DOGE—an agency Musk once led—to scrutinize Tesla and SpaceX. The article also explains the complex role of DOGE, originally the US Digital Service, which Musk and Trump repurposed to aggressively cut federal jobs and restructure agencies. Trump’s threat to turn DOGE against Musk raises questions about potential investigations, especially since Musk had reportedly dismissed federal investigators examining Tesla, SpaceX, and X during his tenure at DOGE. This situation is further complicated by calls from lawmakers, such as Representative
energyelectric-vehiclesTeslaElon-Muskgovernment-policysubsidiesrenewable-energyDonald Trump slams Elon Musk over EV subsidies as feud heats up
The article details a heated public dispute between former U.S. President Donald Trump and Tesla CEO Elon Musk centered on federal spending and electric vehicle (EV) subsidies. Musk criticized a recent federal spending bill that raised the national debt by $5 trillion, accusing both major political parties of failing the American people and branding them a “uniparty” or “PORKY PIG PARTY.” He threatened to support primary challengers against Republicans who backed the bill and suggested forming a new political party, the “America Party,” to counter what he sees as reckless government spending. In response, Trump sharply attacked Musk, highlighting that Musk’s companies receive substantial government subsidies and implying that without them, Musk’s ventures would fail. Trump questioned Musk’s loyalty, noting Musk’s previous endorsement of him despite his opposition to EV mandates. Trump reiterated his stance against forcing consumers to adopt electric vehicles, calling such mandates “ridiculous,” and sarcastically proposed cutting off subsidies for Musk’s businesses, including Tesla and SpaceX, to
energyelectric-vehiclessubsidiesgovernment-policyTeslaElon-Muskpolitical-debateBillions In Subsidies Flow To LNG Canada As Kitimat Terminal Nears Launch - CleanTechnica
The article highlights the extensive public subsidies and fiscal incentives underpinning the launch of LNG Canada’s Phase 1 liquefied natural gas terminal in Kitimat, a project initially valued at around C$17–18 billion. Federal, provincial, municipal, and international support has played a critical role in reducing the project's capital costs. Notably, the federal government contributed approximately C$275 million in direct grants, including C$220 million from the Strategic Innovation Fund for advanced gas turbines and C$55 million for infrastructure upgrades like the Haisla Bridge. Beyond direct funding, significant hidden subsidies have been provided through tax exemptions and tariff waivers, such as the roughly C$1 billion exemption on import duties for fabricated steel modules sourced primarily from Asia, which substantially lowered construction costs. The article also contrasts the political reactions to LNG Canada’s reliance on large-scale imports from China with the contentious debate over British Columbia’s decision to commission hybrid ferries from Chinese shipyards. While the ferry contracts sparked vocal partisan criticism
energyLNGsubsidiesnatural-gasinfrastructurefossil-fuelsCanadaFrom Hydrogen Hope To EV Reality: How Hype’s Subsidy Bubble Burst - CleanTechnica
Hype, once a leading hydrogen taxi service in Europe, has abandoned hydrogen technology and shifted exclusively to electric vehicles, reflecting the broader global failure of hydrogen-powered transportation ventures. Founded in Paris in 2015, Hype initially expanded rapidly by leveraging substantial subsidies from French government agencies, regional authorities, and the European Union. Key funding came from the French Environment and Energy Management Agency (ADEME), the Île-de-France region, and the EU’s Fuel Cells and Hydrogen Joint Undertaking (FCH JU), which supported both vehicle acquisition and the costly hydrogen refueling infrastructure. This extensive public funding masked the underlying economic challenges of hydrogen taxis, which remained prohibitively expensive without subsidies. A critical factor in sustaining Hype’s operations was its partnership with Toyota, which provided free hydrogen fuel with leased Mirai fuel cell vehicles for several years, eliminating a major operational cost and creating a misleading impression of economic viability. By 2020, Hype operated Europe’s largest hydrogen taxi fleet and was prominently featured in
energyhydrogen-fuel-cellselectric-vehiclessustainable-transportationclean-energysubsidieshydrogen-mobilityElon Musk's Political Naivete, Part 376 - CleanTechnica
The article critiques Elon Musk’s political naivete, particularly regarding his expectations that Republicans would cut subsidies for oil and gas alongside electric vehicle (EV) subsidies to create a level playing field. Musk reportedly believed that the Republican Party might reduce or eliminate fossil fuel subsidies to address the deficit, an idea the author finds implausible given the party’s historical support for oil and gas interests. Musk also argued on the campaign trail that removing EV subsidies would hurt Tesla’s competitors more than Tesla itself, a notion described as unrealistic given the growing competition in the EV market. Additionally, the article highlights a congressional proposal to eliminate fuel economy fines for automakers, which could undermine EV adoption by removing penalties for not meeting fleet fuel economy standards. The author emphasizes that fuel economy requirements currently incentivize automakers to produce and sell EVs, reflecting genuine consumer demand. Musk’s earlier efforts to promote a carbon tax with Donald Trump are also discussed, with the article labeling this as politically naive due to the strong opposition to such measures in the US, especially among Republicans who often deny climate change. Overall, the piece portrays Musk as idealistic but politically uninformed, particularly regarding US climate and energy policy realities.
energyelectric-vehiclessubsidiesfuel-economycarbon-taxTeslaclean-energy-policiesThe Basics of IRA Subsidies and Why It’s Stupid to Kill Them - CleanTechnica
energyelectric-vehiclessolar-powersubsidiesInflation-Reduction-Actclean-technologyfossil-fuelsCalifornia’s New Hydrogen Subsidy Sinkhole: 13 Cars, Millions Spent, Negative Impact
energyhydrogenclean-transportationzero-emission-vehiclesCaliforniasubsidiescarsharing