Will see more of this... NEW YORK (Reuters) - Developers of renewable energy projects selling unused U.S. tax credits to other companies now account for a market worth between $7 billion and $9 billion, buoyed by legislation in 2022 that made these trades possible, a new study shows.
President Joe Biden's climate law aimed to stoke trillions of dollars of investment to wean the economy off planet-warming fossil fuels, partly through tax breaks for builders of projects like wind farms and solar plants.
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Still waiting for Investment Tax Credits details in Canada. Will they be tradeable? Also tax credits for green hydrogen development. Offshore vs onshore wind. More credits for offshore due to cost or making hydrogen at sea?
What about international buyers of green LNG/hydrogen who are willing to pay a premium. Will countries issue tradeable green certificates for such commodities, like the EU is planning?
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Years ago this came as a shock to BC Hydro and Hydro Quebec.
Hydropower is certainly renewable, but the US Environmental Protection Agency does not consider it “green”. Therefore no renewable energy certificates can be issued. Opponents point to the impact of the methane and carbon released by vegetation that rots in flooded reservoirs.
So windfarms/solar win the day?