Dig Baby, Dig. Burn Baby, Burn. Not words Environmentalists want to hear, but mana from heaven for China and, albeit less so, for most of the rest of us outside the USA.
Why? To turn a cliche, we get to the answer by following the money:
Globally, investment in renewable energy now outpaces fossil fuel electricity by 2 to 1 (that’s $ trillions), with more investment in solar than all other power sources combined (IEA). The renewables market has runaway growth and we’re awash with news of massive new solar parks, wind farms and undersea cables connecting the renewable have-nots with the haves (Singapore-Australia, UK-Morroco, for example).
Here’s the mood music:
Solar is now the cheapest electricity we’ve ever had (World Economic Forum).
Onshore wind is the 2nd cheapest - WEF.
Huge batteries are starting to transform power grids. The newest battery tech uses cheap-as-chips sodium. That’s salt to you and me. Combined with solar, now the 3rd cheapest, and with prices plummeting.
99% of America’s remaining coal plants cost more to keep running than to replace with wind and solar - Forbes.
Houston, we have lift-off. Oil-soaked Texas now has more renewable energy than California.
“Economics can turn even the biggest climate change sceptic into a clean energy evangelist. This is exactly what has happened in Texas.” Financial Times.
China is winning the race to build cheap solar. Last year it installed more solar than the entire existing solar capacity of the USA.
China is winning the race to roll out cheap Sodium (salt) grid-scale batteries.
China is winning the race to build cheap EVs.
The fossil fuel fug hanging over global markets is clearing and the future is in plain sight.
“Between now and 2030, the world is on course to add more than 5,500 gigawatts of renewable power capacity – roughly equal the current power capacity of China, the European Union, India and the United States combined. By 2030, we expect renewables to be meeting half of global electricity demand.” IEA. That’s makes Burn, Baby, Burn a very hard sell.
Trump's vision is chasing a market that’s circling the plug-hole, slowly for now - but accelerating as it loses ground to cheaper, more profitable renewables.
The end game is predictable and the country that dominates renewable energy wins the glittering prizes.
This is Trump’s great gift to China.