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US clean energy expansion hindered by long, complex permitting
JP Morgan, cited by Semafor, says permitting delays contribute to grid upgrades not being delivered and generation capacity not coming online.
The global energy system is being pressured by multiple overlapping challenges, including geopolitical disruption of oil and gas markets, added strain from the artificial intelligence boom on power grids, and dangerous heat waves, which all underline the urgency of transitioning to cleaner energy, OilPrice reports.
OilPrice points to “red tape” as a key obstacle to decarbonization, arguing that permitting is the biggest roadblock to clean energy expansion even when financing and resource access are also major hurdles.
According to OilPrice, bureaucratic bottlenecks in permitting are affecting clean energy buildout in countries including Australia, Canada, Germany, and the United Kingdom, with the United States facing the biggest challenges, based on experts at JP Morgan as reported in an exclusive by Semafor.
OilPrice says JP Morgan links US permitting timelines, an antagonistic political environment, and overlapping state and federal policies to results such as generation capacity not coming online, grid upgrades not being delivered, and industrial facilities not being built.