Recession Could Kill Climate Rescue Advances
The new Conference Board Consumer Confidence Index was released for April. The results could hardly have been more dire. The Expectations Index—based on consumers’ short-term outlook regarding income, business, and labor market conditions dropped 12.5 points to 54.4. That is the lowest level since October 2011 and well below the threshold of 80, which is usually a sign a recession is ahead. One of the victims of many recessions is capital investment in projects that do not have immediate returns. Much of the renewables sector falls into that category.
Wind energy is the most likely renewable to be hurt in a downturn. Several companies in the wind sector have already failed or left the business. The new Trump plans that cripple offshore wind installations have already made advances nearly impossible financially.
Solar Investment
Solar is much better off, but there remains skepticism about its short-term prospects. The Solar Sector Index, which covers publicly traded solar companies, is down 37% in a year. In the same period, the S&P is 8% higher.
Nuclear power advances are based on two factors. One is restarting old reactors, as is the plan with Three Mile Island. The other is Small Modular Reactors (SMRs). The SMRs are in an early enough stage that they will need long-term capital.
Capital is about to become scarce, and green investments will suffer.
More from ClimateCrisis 247
- No Energy Means No AI
- New York City Faces Another Huge Blackout
- Elon Musk Appears Ready To Use Massive Electricity Supply
- New York Electricity Bills To Surge On Grid Upgrade
