US president proposes fossil fuel subsidy cuts whilst supporting continued growth for clean energy business

As the oil sector experiences turbulence, US President Barack Obama used his annual State of the Union address this week to make it clear that he supports the clean energy industry and recognises that the fossil fuels sector has been subsidised for too long.

With total investment in renewable energy globally reaching US$211billion in 2010, it is clear that there is worldwide adoption of green technology. Over the last few years the sector has increasingly seen non-renewables based businesses turn to clean energy to reduce energy costs, protect from price volatility and improve their carbon credentials. Governments are also continuing to push for growth in clean energy, seeing it as good for their economies as well as the environment.

On the 24th of January, US President Barack Obama called on Congress to pass tax credits to support the ongoing growth of the renewable energy sector:

“We have subsidised oil companies for a century. That’s long enough. It’s time to end the taxpayer giveaways to an industry that’s rarely been more profitable, and double-down on a clean-energy industry that’s never been more promising. Pass clean-energy tax credits and create these jobs.”

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Obama proposed a new goal of 80% of America’s electricity to come from clean energy sources by 2035, pledging to establish zones to develop 10GW of solar and wind projects on public lands, and plans by the US Navy to purchase significant amounts of renewable energy.

Even if his calls are not enacted, Green Peninsula sees continuing opportunities for businesses to benefit from clean energy in the US and other markets.

To find out more about how we can help your business to understand clean energy and reduce its electricity bill please contact us.