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Scribbling for environmental, social and economic justice. With major renewable energy and automotive media now obsessed with the success or failure of Tesla’s zero emissions Model 3, it’s helpful to understand the larger context in which a monumental conflict between an old, mostly dirty industry and new clean energy players is occurring. To this particular point, we should take the opportunity to step back for a moment from the day- to- day minutiae of business activities and related media campaigns to ask this single essential question: In the present day’s ever- worsening and warming climate, what does a wise, forward- looking national energy policy look like? Such a question may seem out of context until one considers the fact that the object of so much media and industry drama — Tesla — operates in what can best be described as a conflicted policy environment. In the U. S., Tesla enjoys a dwindling subsidy in the form of tax breaks going to purchasers of zero highway emissions electric vehicles (EVs). This subsidy was intended to incentivize zero emission vehicle adoption and thus enable the numerous health and environmental benefits that would result from taking more polluting automobiles off the road.(One of Tesla’s main advantages has always been aspirational vision. Part of that vision involves a systemic approach to clean energy production.

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In one example, Tesla not only produces electrical vehicles, it owns a large and expanding global EV charging infrastructure. The future is electric and Tesla is vertically integrated.)Such a subsidy also pushes for the replacement, ultimately en- masse, of dirtier vehicles upon which an old and thus more easy to profit from industry presently relies. And in Western democracies, this looming replacement has resulted in a number of political and media firestorms as the old industry tries to delay or deny the pathway for new energy leaders like Tesla. These old industry players — ranging from traditional automakers to fossil fuel behemoths — have managed to place barriers to electrical vehicle adoption in many regions. The upshot is a kind of energy policy (and related media) gridlock where the old industry attempts to hamstring the new, aspirational, more helpful industry at every possible turn.

In this very serious game with ultimately extraordinary consequences for everyone living on the planet, this increasingly polarized policy posture results in serious delays of an essential energy transition. It also leaves wide open the door for outside competitors to take advantage of what can well be described as western balking and intransigence at a critical moment in global history.

China’s Drive for Global Energy Leadership. For a China observing a West consumed by in- fighting and division over energy and climate futures, wise policy involves a rapid move to cut coal burning and shift to becoming a global renewable energy leader. To do this, China has funneled billions of dollars of aid and incentives to solar production, to battery production, and to electrical vehicle manufacturing. It has protected these markets, which it invests heavily in, by both tariffs and trade laws.

Some of these laws encourage the transfer of technical knowledge to local companies by requiring foreign companies wishing to produce EVs on Chinese soil to partner with indigenous industry and share information. For China, these policies are not simply altruistic. Though they will result in considerably less greenhouse gas emissions on net and help to drive the world to reduce harms from both air pollution and climate change, they are also aimed at global energy leadership and, perhaps, dominance. They grant China both moral authority and economic might that leverages the powerful economies of scale a massive manufacturing base provides. Such clear- focused policies aimed directly at both moral and strategic energy goals are largely lacking in the polarized West.

And this consistent organization and follow- through produces a growing moral and economic advantage for China. For the prize of renewable energy leadership or dominance is huge — ranging in the trillions of dollars.(China leaving the U. S. behind on green energy. This is largely and ironically due to increasingly backward climate policy promoted by the Trump Administration.)In the global solar industry, such renewable energy focused polices have resulted in the majority of world solar manufacturing being housed in China.

This development, in turn, has produced a considerable price advantage for solar panels manufactured by large Chinese facilities that can leverage expanding economies of scale. Watch White Heat Online Forbes. In the U. S., this advantage has produced a flood of cheap solar panels coming from foreign shores.

Such a flood helped to enable the building of a massive industry that now directly employs more than 3. But cheap Chinese imports have also put a big dent in direct solar manufacturing in the states. In reaction, we are now seeing a trade case that will have far- reaching impacts on the U.

S. solar industry presented to the unwise and irrational Trump Administration. And it is, perhaps, the irony of all ironies that a Chinese solar manufacturer operating on American shores was one of the key plaintiffs in a case that could dramatically undercut solar adoption rates while also removing thousands of renewable energy related jobs if handled poorly.

Though China’s solar industry is well ahead, its related electrical vehicle industry is rapidly catching up. Watch Singin` In The Rain Online Hollywoodtake. Last month (September of 2.

China. This represents about half of all electrical vehicles sold across the world during that month. It is 8. 0 percent more EVs than were sold in China during September of 2. So far in 2. 01. 7, 3. EVs have sold in China, which is a 4. Globally, due in part to these considerable advancements by China, it is likely that total EV sales will well exceed the 1 million mark for the first time with growth into 2.

Tesla as Global Gadfly vs Ailing ICE Industry. And here we return, at last, to Tesla and its imminently controversial Model 3. For what China is doing on a massive national scale, Tesla is attempting to do through business and related capital investment alone.

Tesla is a renewable energy only company — offering battery storage for clean power systems, electrical vehicles, and solar panels. And it is presently the only large western automobile and energy company to operate under an all- renewable products banner. Tesla’s mission from jump was to attempt to spur widespread electrical vehicle production and a related renewable energy revolution. To disrupt the automobile market enough to spur the entry of serious competitors and to, through such competitive incentive, drive a global industry sea change. And the Model 3 was at the center of Tesla’s plans.

Tesla’s successful Model S and X were intended, in other words, to enable Tesla to mass produce a high- quality, lower cost, long- range electrical vehicle that, by itself, would be capable of selling 2. This vehicle, in turn, was meant to help Tesla produce an even lower cost, high quality EV that would be capable of selling even more. Looking at numbers alone, it is difficult to conceptualize what such sales would mean for the global automobile industry. But digging a bit further, we find that the Model 3 represents a serious threat to a large lower- end luxury and sport vehicle market presently dominated by major ICE automakers such as GM, Audi, Porsche, Volvo, Mercedes, Jaguar, Toyota, and BMW.

IF the Model 3 achieves its sales goals, well- selling vehicles like BMW’s 3 series or the Audi A3 or A4 could be decimated. Such automakers would be largely forced to react by producing high quality EVs to compete with the Model 3 and hopefully blunt some of its impact on traditional auto industry profits. Which is exactly what is now happening as we see Chevy’s Bolt, an up- ranged Nissan Leaf, and numerous other higher- quality, longer- range, lower- priced EVs on the way or already on the market.