Author Archives Laura Arnold
By Reuters Staff
(Reuters) - The U.S. Federal Reserve for the first time called out climate change among risks enumerated in its biannual financial stability report, and warned about the potential for abrupt changes in asset values in response to a warming planet.
“Acute hazards, such as storms, floods, or wildfires, may cause investors to update their perceptions of the value of real or financial assets suddenly,” Fed Governor Lael Brainard said in comments attached to the report, released Monday.
“Chronic hazards, such as slow increases in mean temperatures or sea levels, or a gradual change in investor sentiment about those risks, introduce the possibility of abrupt tipping points or significant swings in sentiment,” Brainard said.
Such abrupt price changes from climate-related disasters could also create difficult-to-predict knock-on effects through financial markets, the report said, particularly because not enough is understood, or disclosed, about the true extent of exposures to climate risks.
“Increased transparency through improved measurement and more standardized disclosures will be crucial,” Brainard said. “It is vitally important to move from the recognition that climate change poses significant financial stability risks to the stage where the quantitative implications of those risks are appropriately assessed and addressed.”
Monday’s report comes just days after Joe Biden won the U.S. presidential election against President Donald Trump, who has downplayed the risks of climate change. Biden has promised to put fighting climate change back on the U.S. policy agenda.
Reporting by Ann Saphir; Editing by Alistair Bell
Solar Advocates File Emergency Motion to Prevent Ameren from Devastating Illinois’ Solar Market
Chicago – Solar industry and Environmental groups today filed an emergency motion with the Illinois Commerce Commission (ICC) to prevent utility company Ameren from devastating rooftop solar in Southern and Central Illinois. Last week Ameren told the Commission it intends to eliminate fair compensation for the solar energy homeowners and families produce. Ameren would slash the credits solar customers receive for excess clean energy, a foundational policy known as “net metering,” as soon as October 1.
The abrupt move would cost the average residential solar customer hundreds of dollars per year, wiping out savings on energy bills and putting solar projects out of reach for many consumers. Ending the policy early impacts every new solar customer in Ameren territory as well as hundreds that have already committed to installing solar but now won’t receive the full savings they signed up for. Ameren’s move would disrupt the solar group purchasing programs currently being sponsored by municipalities and advocacy groups in Champaign-Urbana Carbondale, and several Metro East counties that were expected to drive numerous residents to purchase new solar systems during the month of October.
By suddenly reducing the value of rooftop solar, Ameren is also threatening jobs at Illinois’ independent solar businesses, which have already seen 3,500 jobs disappear this year alone due to a lack of funding in the state’s clean energy program and the impacts of COVID19.
“This move is contrary to Illinois’ commitment to creating jobs, protecting consumers and expanding clean energy, said Nakhia Morrissette, Central Region Director & Counsel for SEIA. “We’re calling on the ICC to fix it urgently before we lose more solar industry jobs.”
”Our employees and customers will be directly hurt if Ameren is allowed to pull the rug out from under our market,” said Shannon Fulton, VP of Development for StraightUp Solar in Bloomington, IL. “I hope the Commerce Commission understands that this is a threat to jobs and consumers’ pocketbooks in the middle of an economic crisis. We need them to take immediate action.”
Clean energy groups argue that Ameren is distorting Illinois statute in order to avoid its legal responsibility to fairly compensate rooftop solar and help Illinois meet its clean energy goals. In July, an ICC administrative law judge found that Ameren’s calculations on net metering limits were wrong and estimated they should continue paying customers the full value for their solar energy for at least 2 more years.
But on September 24th, the ICC issued a ruling that Ameren is using as justification to continue relying on its faulty calculations and end net metering years ahead of schedule.
“Right now, Illinois families in Ameren territory are unable to make a confident calculation of the value of investing in rooftop solar, stalling the industry and stymying consumer choice,” said John Delurey, Midwest Director at Vote Solar. “The consequences are especially dire for low-income families, who would no longer have access to the solar cost savings from the Illinois Solar for All program.”
“We’re calling on the Commission to act quickly and decisively to protect the state’s cornerstone net metering policy while it continues to develop new policies to fairly compensate rooftop solar customers for the significant value they provide to the electric grid,” said Brad Klein, Senior Attorney at the Environmental Law & Policy Center, who helped prepare the legal filing.
The emergency filing was submitted to the ICC by the Solar Energy Industries Association, Illinois Solar Energy Association, Coalition for Community Solar Access, Environmental Law & Policy Center, Natural Resources Defense Council, and Vote Solar.