Sustainability

During the United Nations Framework Convention on Climate Change (UNFCCC) 29th Conference of the Parties or COP29, a significant milestone was reached in the fight against climate change. After nine years of intense negotiations, carbon trading rules between countries and the private sector were finally approved. 

In the quest to support renewable energy developers and investors, the U.S. government offers a variety of investment tax credits (ITC) and production tax credits (PTC), collectively known as tax credits (TCs). These credits are designed to reduce tax liability, but their value can be limited in certain circumstances. If there is no taxable income, the credit remains unused, neither impacting cash flow nor providing value to the investor.

The transition from fossil fuels to renewable energy is accelerating globally. Solar photovoltaic (PV) and wind power generation are predicted to surpass nuclear power by 2025 and 2026, respectively. Policymakers and advocates are driving this shift to combat climate change, and various policy measures support the integration of sustainable energy. Solar PV, onsite solar, community solar, onsite battery storage, power purchase agreements (PPAs), and energy attribute certificates (EACs) are key components of renewable energy adoption. Leveraging expert insights can help organizations navigate these options effectively.

When navigating decarbonization decisions, consider the following key points: Understand your company’s vision and values, and choose wisely based on program goals, project timelines, budget, infrastructure, and local regulations. 

The 27th Conference of the Parties (COP27), held in Sharm El-Sheikh, Egypt in 2022, brought together world leaders to urgently address climate change. During this annual United Nations Climate Change Conference, representatives discussed global warming, set new goals, and emphasized the need to tackle carbon emissions and other pollutants worldwide.