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illuminem summarises for you the essential news of the day. Read the full piece on CNN or enjoy below:
🗞️ Driving the news: The U.S. is falling further behind China in the global clean energy race, a situation worsened by President Donald Trump’s new spending bill, which significantly reduces tax credits for wind and solar energy
• The law is expected to slow the growth of renewables in the U.S., raising electricity prices and stalling technological advances in energy storage, while China continues to expand its renewable energy capacity at an astonishing pace
🔭 The context: While China has already installed five times the renewable capacity of the U.S., it is pushing forward with a massive 510 gigawatts of new wind and solar power
• The surge in Chinese renewable development is partially due to developers rushing to meet expiring government subsidies
• In contrast, the U.S. faces a setback due to Trump's legislation, which cuts subsidies and could halve the country’s planned renewable energy capacity over the next decade
🌍 Why it matters for the planet: As countries accelerate their transition to renewable energy, the U.S. risks losing its competitive edge, which could hinder its progress on both climate change and economic growth
• While China makes substantial strides in displacing coal and promoting electric vehicles, the U.S. might struggle with higher electricity prices and slower progress on the energy transition
• The global race to dominate the clean energy sector is critical for future sustainability, and any lag in progress could have significant economic and environmental consequences
⏭️ What's next: With the slowdown in renewable energy development in the U.S., industries that rely on affordable clean energy — such as data centers and semiconductor manufacturing — could face challenges in expanding
• The U.S. will need to reconsider its policy approach if it aims to regain momentum in the renewable energy sector, while China’s continued investment in wind, solar, and electric vehicles could solidify its leadership in global energy markets
💬 One quote: “The game has already been called.” — Li Shuo, Director of the China Climate Hub at the Asia Society Policy Institute
📈 One stat: China has installed over 1,400 gigawatts of renewable energy, with an additional 510 gigawatts currently under construction, compared to the U.S.'s 275 gigawatts
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