- Published: 21 January 2016 21 January 2016
Long-term consistent policies appear on the horizon
In my Publisher’s Note from the beginning of this year (and in many others over the years too) I urged for a long-term and consistent policy to really develop a global stable base market. And, finally, it looks like we might be heading that way based on events that happened in December 2015!
First at COP 21 in Paris, governments of the world united in action on climate change by adopting the Paris Agreement, the first universal, legally binding climate deal. This agreement will hopefully spur a transformation of global growth and development and open the door to a low-carbon, stable, sustainable future with renewable energy playing an important part.
Alongside the Paris Agreement, cities, regions, businesses, investors, civil society groups, trade unions and others have signed L’Appel de Paris, or the Paris Pledge for Action. This is a call to action in support of the Paris Agreement that brings together a multitude of voices on how to quickly and effectively help implement the Paris Agreement and accelerate the transformative changes needed to meet the climate change challenge. So far L’Appel de Paris has already been signed by over 400 businesses who have affirmed their commitment to a safe and stable climate in which temperature rise is limited to under 2 degrees Celsius. We at Windtech International have also signed the pledge. What about you? Go to www.parispledgeforaction.org and show your support!
PTC and ITC extended for five years in the USA
Also in December the US House of Representatives voted on a strong bipartisan basis, 316 to 113, to approve the 2016 spending package. Congress recently extended renewable energy usage tax credits by another five years. According to analysis by Bloomberg New Energy Finance, this extension allows for a projected US$ 73 billion in new solar and wind energy investments. As a result, the wind energy Production Tax Credit (PTC) and alternative Investment Tax Credit (ITC) will now be extended for 2015 and 2016, and continue at 80 per cent of present value in 2017, 60 per cent in 2018 and 40 per cent in 2019. Installations that occurred during 2015 will retroactively be granted credits. As before, the rules will allow wind projects to qualify as long as they start construction before the end of the period. Finally, after many years, there is a long-term policy in place in the USA which gives investors confidence and the wind energy industry a clear road to growth.
These major changes to the USA’s energy sourcing arrive just after the Paris climate change agreement. Unfortunately, not all major governments are taking such huge strides this soon but hopefully they will follow in the not too distant future.
Let me end this Publisher’s Note with the most important thing: my best wishes for 2016. I hope it may bring health and prosperity for you and for your families.