– Lack of incentives hinders the growth of renewable energy
Government officials around the world are looking for effective strategies to prevent climate change. Environmentalists note that regulating and reducing greenhouse gas emissions will prevent rising temperatures. Countries need to put in place effective incentives to expand renewable energy generation.
The lack of global incentives for renewable energy is hampering the growth of the industry. Some countries find it difficult to abandon fossil fuels because of their deep-rooted ties. Various logistical barriers can prevent regions from extending renewable energy incentives.
America is struggling to develop clean energy production and consumption. The country’s economy is highly dependent on the oil and gas industry. Fossil fuels influence American foreign policies and relations.
Oil and gas also influence the transportation, shipping and military sectors of the country. The country has developed minimal incentives for renewable energy and continues to rely heavily on fossil fuels. Another overall limitation of incentives relates to funding.
The United States is also phasing out some renewable energy incentives due to financial constraints. The US clean energy tax credit will drop from 26% to 22% by next year. Minimal financial support to the renewable energy sector can hamper production and expansion.
Capitalist nations are struggling to move away from fossil fuel uses due to corporate influences. Some countries have developed a carbon credit system to manage emissions and promote the use of renewable energy. Companies have to pay to use fossil fuels and produce greenhouse gas emissions.
Professionals have designed the credit system to minimize companies’ dependence on fossil fuels. Environmentalists quickly recognized the limits of sustainability with the credit system and its influence on monopolization. Big companies started buying all the credits from small companies to use more fossil fuels and produce more emissions.
Other companies would respect the credit system by offsetting their emissions instead of using renewable energy. Carbon credits have not been able to produce real growth in the clean energy sector. Some countries create small-scale incentives to influence lasting change.
Current Renewable Energy Incentives
The EU is using the feed-in tariff (FIT) incentive to influence the growth of renewables, which forces grid operators to buy emission-free electricity. The government sets a tariff rate and premiums to manage transactions between producers and distributors. A disadvantage is that FIT incentives do not hold companies accountable for their energy consumption rates.
The United States has also developed tax credits for wind and solar energy to influence the production of renewable energy. Environmentalists identify the financial limits of the American credit system. They identify how large banks derive more economic benefit from renewable energy incentives than producers.
Individuals can recognize the limits of tax incentives and use fossil fuels instead of clean energy. Countries need to develop more incentives to help develop the renewable energy sector and minimize greenhouse gas emissions.
Future improvements and influences on renewable energy
Creating effective incentives can help companies protect the health and well-being of their employees. Government officials can align renewable energy incentives with Occupational Safety and Health Administration (OSHA) regulations to influence lasting change. The administration can protect workers’ lung health by regulating emissions and increasing clean energy production.
Using clean energy can reduce greenhouse gas emissions in the workplace and reduce the risk of employees developing respiratory illnesses. When individuals inhale emissions, they are more likely to develop cancer, asthma, chest pain, and other health effects. Government officials can also increase renewable energy production and reduce emissions by expanding current incentives.
The UK has developed the Non-Domestic Renewable Heat Incentive (RHI) to help businesses access clean heat. The RHI encourages a nationwide transition away from gas heating systems. Parliament can extend the RHI beyond its links with business to include the residential sector.
Countries can also work together to consolidate a global revival of renewable energy. The regions discussed a joint clean energy incentive during the pandemic to increase production rates. Government officials can establish a global stimulus package to help individuals and business owners invest in renewable energy systems.
When will the world reach carbon neutrality?
The United Nations (UN) developed the Paris Agreement to promote lasting global change. The UN is pushing countries to adopt renewable energy sources and eliminate emissions by the next decade. Nations can achieve the goal of sustainability by developing effective incentives and developing the renewable energy sector.