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10/13/2008 07:32 AM
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Economic Crisis and Renewable Energy - News Summary
SustainableBusiness.com News
As the world waits to see how deep the financial crisis will go, the
ratio of bad news to good news for the environment and the renewable
energy industry seems to be about 4 to 1.
The Associate Press reports on the economic roadblock that has blocked expansion of U.S. biofuels.
But according to the report, there were ominous signs for the industry
even before the recent turmoil on Wall Street. Too many companies
rushed into the market, creating a bubble that rising corn and soybean
prices quickly deflated.
The San Francisco Chronicle explains the effects of the previous week on the solar industry.
Passage of the long-awaited investment tax credit was cheered
throughout the industry, but spirits were quickly dampened as stock
prices fell roughly 30% and concern grew that credit financing will be
unavailable for solar projects in the near future.
The Houston Chronicle suggested the outlook for the entire renewable energy industry might not be much better, citing the significant drop in the price of oil and a lack of capital for new ventures.
And to round out the bad news, the Associated Press reports that an economic freefall is bound to overshadow the global warming crisis,
making it more difficult for legislators to push for climate change
legislation in the U.S. and elsewhere--particularly when many believe
such legislation will prove costly.
However, there is opportunity to realign global economics in
support of clean energy and green growth, according to UN climate chief
Yvo de Boer. If nations recognize the current economic crisis as an
opportunity to move forward in a new direction, change for the better
could take place. De Boer said the key is that available funds must not
be used simply to "refloat" the financial system, but should be spread
to assist both developing and developed nations establish clean energy
and address climate cange, according to a Reuters report.
