In a letter to shareholders, JP Morgan chief executive officer Jamie Dimon recognized that the window for action to avert the costliest effects of global climate change is closing. He voiced support for nonpartisan permit reform for renewables development, one of the most immediate and addressable bottlenecks to the United States’ march toward climate disaster mitigation.
“The need to provide energy affordably and reliably for today, as well as make the necessary investments to decarbonize for tomorrow, underscores the inextricable links between economic growth, energy security and climate change. We need to do more, and we need to do so immediately,” said Dimon.
Dimon said in addition to reforming permitting, siting and interconnection issues for power generation and transmission, the U.S. may need to invoke eminent domain to site local clean energy rapidly. Eminent domain involves the seizure of, and compensation for, private lands for public purposes. Siting is a key issue to address for renewables, as distributing energy generation in places closer to the end-use point comes with efficiency and materials use benefits, particularly for transmission infrastructure.
“We simply are not getting the adequate investments fast enough for grid, solar, wind and pipeline initiatives,” he said.
Policies like the Bipartisan Infrastructure Law, Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act, and the Inflation Reduction Act (IRA) hold the potential to unlock over $1 trillion in clean technology development. However, these policies must be implemented effectively to achieve climate goals, he said.
This view is evidenced from recent analysis from the Energy Information Administration (EIA). In its projections for the impact of IRA incentives on solar buildout, EIA found that the implementation of bonus credits and other ancillary programs will dictate the outcome. Low-case projections for IRA bonus content place the buildout of renewables in a similar range to a no-IRA environment, suggesting that there is still a need for guidance from authorities to evaluate the true effect of the historic legislation.
Dimon said the upside to effective implementation of policy and a robust energy transition is “undeniable.”
“Widespread investing across the private sector will aid domestic manufacturing, invigorate research and development in green innovation, help create resilient supply chains, lift up local economies and build the U.S. clean energy workforce by up to 9 million jobs over the next decade,” he said.
With the ongoing war in Ukraine and roiled trade relations across Europe and Asia, a new strategy for energy security is rising. Renewable energy and decentralized supply chains are being pursued as a matter of national security.
Among other strategies, Dimon suggested the U.S. develop a Marshall Plan for global energy and food security. The Marshall Plan was a 1948 initiative that provided aid to war-torn Western Europe. The U.S. provided about 2% of its GDP to revive European manufacturing, and in four short years, industrial production in Western Europe increased 55%, said the World Bank organization.
This kind of strategy could spur the manufacturing needed to support global solar buildout. An international consensus showed that solar capacity must grow over 7,000% to 75 TW by 2050 to stave off the worst effects on climate.
“A major risk for the next decade would be to make poor assumptions or mistakes in modeling the required growth in the PV industry, and then realize too late that we were wrong on the low side and need to ramp up manufacturing and deployment to unrealistic or unsustainable levels,” said a report from the Terawatt Conference, a coalition of 41 institutions across 15 nations.
For the United States, the JP Morgan executive warned that polarization, paralysis, and a basic lack of analysis cannot prevent the world from addressing these challenges.
“I also want to express exasperation with some of my fellow citizens who don’t pay the taxes they owe on the order of $600 billion a year, who won’t consider sensible policy measures like a carbon tax to stem climate change and who sometimes seem to only like democracy when the voters agree with them. Democracy by its nature is compromise,” he said.
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JPM CEO thinks it’s a good idea to use eminent domain to force people to sell their land to the state (at FMV as determined by the state, of course) to stop the always changing climate from changing. Good to see such strong support for property rights.
Question: How much does the JPM CEO stand to gain from his personal investments in a state-funded (i.e., taxpayer-funded) grift that sends US $ to China, the source of 75% of “green” energy components and minerals needed for their manufacture? Does he have a conflict of interest?
Maybe JPM should stick to its fiduciary responsibilities and leave ESG to other awesome banks like SVB.
This proposal is BS!!!! I see time and time and time again where local land owners want to use, sell or lease their land, (these are mostly farmers), to produce alternative energy but local opposition, local ordinances and/or state laws throw up roadblocks. Now, instead of removing roadblocks so that the landowner is free to profit or fail, we want to invoke Eminent Domain so that “The Right People” profit and the taxpayers/ratepayers foot the entire bill! Where is YOUR outrage?
“We simply are not getting the adequate investments fast enough for grid, solar, wind and pipeline initiatives,” he said. I’d be interested in knowing more about the relative weight of interest in each of the four initiatives. Are they equal in his mind or will the “pipelines” take precedence over the others, depending on the political party in the majority at the time?
Eminent Domain is a last ditch strategy. If it is for the greater good, and there is no alternative, we have to live with it. Unfortunately in the past it has been applied to land acquisition for assembling casinos in New Jersey and picturesque rural holdings in the hills of Kentucky for removing a mountain to access the coal, etc, thus giving everybody a sour taste for eminent domain. It was and can be a strategy for the powerful elete making a buck off the backs of the little guy. I think this situation today is much different.
The driver now is to save the planet as expeditiously as possible, not to make more money. Seriously, If a farmer does not want to sell a part of his farm for a right of way, and that right of way then is forced as to jog around the farm, the construction companies make more profit, it takes longer and the transmission line takes longer to build and costs more money. The public, as a whole, looses.
It also should be noted that eminent domain can be invoked for intellectual property such as patents, and manufacturing licensing rights if the owners of such rights choose to sit on them.
The macro….sun, physics, and geology dictate global climate, not mankind.
Just let Marshall RIP…
The USA & 200+ Nations have ALREADY ACCEPTED/RATIFIED THE 1992 UN Rio Agreement (Principle #16) that THE POLLUTERS MUST PAY(PMP) for the Damage & Societal Costs caused by Pollution (mostly) from Use of Energy… 130,000 TWh/yr (130 Trillion KWhe/yr) TODAY AROUND THE GLOBE..!!!
This Energy Use causes 9 Million PREMATURE Deaths Annually and 275Million DALY of Suffering with a Societal Cost of $36.5 Trillion/yr ($1Million/Victim.. EPA uses $9 Million/Victim; $100,000/DALY of year-longSuffering, Time Off from Work and Family Expenses etc..).
A Global, Uniform, Fair & Just PMP Levy of $0.28/KWhe on the 130 Trillion KWhe/yr of Energy used will “UNLEASH THE FLOODGATES” OF FINANCE.. $36.5 Trillion/yr.
to FINANCE & USHER IN A ZERO POLLUTION EARTH WITHIN A DOZEN YEARS FROM THE $400 TRILLION LEVIED/COLLECTED… AS SIMPLE AS THAT… !!!!
For the USA.. this PMP Levy on the 10 Trillion KWhe/yr of Energy used TODAY would make available $2.8 Trillion/yr.. to FINANCE & USHER IN A ZERO POLLUTION USA BY 2050 (OF EARLIER) FROM THE $60 Trillion Levied On & Collected from THE POLLUTERS ONLY… FAIR JUSTICE.. JUST IMPLEMENT THE 1992 UN RIO AGREEMENT …. I SAY…
[ FYI… The USA, using AgriVoltaics (AV) ALONE.. can generate ALL THE POLLUTION FREE ENERGY/ELECTRICITY NEEDED BY MANKIND ON LESS THAN 25% OF ITS AGRICULTURAL/GRAZING LZND .. TODAY… Just 2.5% would meet all of the Energy Needs of the USA in 2050 of 18 Trillion KWhe/yr with a 15TW AV System. As AV enables one to “harvest” Solar Electricity above and Graze/Grow Food below AT THE SAME TIME.. NO LAND IS DIVERTED OR NEEDED..].
Let Marshall RIP… and let the 1992 Rio Agreement RISE “like a Sphinx” … from the “Piles of Files and Agreements” buried under BY THE POLLUTERS ONLY…. AND UNKEASH THE FLOODGATES OF FINANCE AND A ZERO POLLUTION USA …….!!
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