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His new book, Terrible Beauty, argues that “fighting losing battles is a worthy cause.”
When I scheduled this interview with Auden Schendler back in August, I’d picked what at the time felt like an arbitrary time closer to his book’s publication date. It wasn’t until much later that I realized we’d agreed to speak exactly one week after the results of the U.S. presidential election.
Schendler, of course, didn’t write Terrible Beauty: Reckoning with Climate Complicity and Rediscovering Our Soul knowing that President Trump would win reelection, but his book feels all the more vital given the new context of climate policy in America.
Terrible Beauty is a memoir, but it also functions as a practical roadmap to attaining climate consciousness, both for companies and for consumers — an unusual blend. In it, Schendler draws on his more than two decades of sustainability work at the Aspen Skiing Company, which owns one of the most iconic ski resorts in the world, to urge by example that we need to get uncomfortable with the big upheavals necessary to combat climate change. The modern environmental movement has failed, he argues, by focusing on the kinds of small-scale changes that have businesses touting flawed carbon credit programs and paper straws — pursuits that are complicit with fossil fuel interests.
Schendler insists that instead, we should be swinging for the fences: Companies that are serious about climate and sustainability ought to use their lobbying powers and legal teams to put pressure on the government, and parents who want a better future for their children should be getting involved in local politics, no experience required. It might be lead to awkward conversations at the water cooler or in the cereal aisle — what Schendler calls the “supermarket problem” — but when everything is at stake, you have to try, even if it means losing.
Our conversation has been edited and condensed for clarity.
Do you think the stakes of your book have changed between when you began writing it and now, when it’s finally hitting shelves?
On one hand, the stakes have changed because it’s even harder to get to the climate fix than before. A major theme of the book is the idea that we’re not playing a uniquely American game of winning and losing; we’re involved in a practice and trying to make things better. We’re not going to “solve” climate change. We’ve already, you could argue, failed because it’s beyond 1.5 [degrees] Celsius warming. The stakes have changed, but the methodology is the same — and possibly more important now because we are in a long struggle that we might not see the end of in our lifetime.
Something I’ve been hearing since the election is that climate advocates need to play small ball during the Trump administration — keep moving progress forward, even in inches. This is an idea you grapple with quite directly in the book. From your perspective, what is the highest-value target an average person can take on?
To be clear, I’m not advocating for small ball — my book is a critique of modern environmentalism going all-in on small ball. It didn’t work, and that’s not surprising.
Historically, we say, I care about climate and I'm going to plug in on all the things everyone has said I’m supposed to do: recycle, drive a Prius, insulate my house, take the blame for the problem myself. And what I’m saying in Terrible Beauty is, all that hasn’t worked, and it’s actually complicit with a fossil fuel economy.
The thing you need to do is get a six-pack of beer and say, Where am I powerful? What is my power? When people do that, people who don’t appear to have power show that they do. Greta Thunberg is a great example because she was just a high school girl, and look what she did. But if you’re a business, your power is different than you think it is — it’s not cutting your carbon footprint and buying offsets. It’s wielding political power.
I’m asking people to become citizens. Being a citizen is difficult — it’s messy, it’s tricky, you get in trouble.
If somebody wants to get involved interacting with their local government, how do they get past the discomfort of what you call the supermarket problem?
The supermarket problem is one of my favorite illustrations: It’s that if a person is given a choice between being a material part of saving civilization — speaking out publicly on climate, that’s one side of the balance — then you’re going to have a really awkward encounter in the cereal aisle in the supermarket with someone who disagrees with you. Most people will say, Yeah, I really do want to save civilization, but I’d rather not have that awkward encounter.
I don’t think that’s actually the problem in public office. I think what keeps people out is the perception that they don’t know enough — that there’s some secret to being a town council person. Speaking as an ex-town council person, we had no skills at all. It was shocking how bottom of the barrel we were. There’s this mystique, and people have to get over it. The United States was created to enable citizens to govern the country, and so as a citizen, you have an obligation. People shouldn’t be scared off by that.
What is your suggestion for someone who has a corporate sustainability role and reads your book and feels inspired to pursue meaningful, large-scale change, but then runs into resistance or skepticism? How do you get the bigwigs on your side?
My experience was years and years of spoon feeding, and spoon feeding in a way that is not righteous. One approach would be, Hey, I’ve been doing these carbon footprints for five years. Obviously, we care about climate. Have we talked to the Government Affairs Department about how this company can wield power?
You have to become a trusted employee by doing your work well. Corporations are made up of human beings that have great loves and epic tragedies and they care about the world. You have to think that if you bring a reasonable offer to do something next level — and by the way, it also helps the brand — then you’re going to get some traction. Another message of the book is, you might not win, but you try again. And you try again. You try again.
Like what you’ve done with including an appendix on how to sue ExxonMobil. You couldn’t put that lawsuit into motion at Aspen Skiing Company, but now you’ve put it out into the world for someone else to try.
Right. The idea is that fighting losing battles is a worthy cause. That is how humans make progress, whether it’s a fight or an invention or a business model. You try, and it doesn’t work, and then the next person learns from your mistakes and tries, and then the next and the next. And this was true of all the great movements, like civil rights. It was a series of attempts and a series of bad losses over many, many years, and then we won more and more and more.
What, if anything, do you think corporations owe the environment?
One of the things I’ve been thinking about recently is that, historically, corporations have opposed regulations. The reality I think we’re coming into is that business is starting to say, Oh my gosh, climate actually is threatening us. It’s threatening our supply chain, our factories, our customers, everything. I’m inclined to think that businesses will start to say, actually, we need to fix this problem because it’s getting worse and worse.
What does business owe the environment? There is a long history of thought and writing that says the source of all wealth comes from the environment. I think the real question is, is business capable of acknowledging that? Can we count on business as designed to help us solve these problems?
My answer is that we don’t have a lot of tools for climate. We have the vote, we have the legal system, we have NGOs, we have government, we have faith groups, we have philanthropy. Business is pretty powerful. We should at least try to use this lever versus just saying, huh, we can’t do it.
The Aspen Skiing Company, as you acknowledge, often ends up serving the kind of clientele who disproportionately contribute to carbon emissions. How do you square that with the work that you do? Why is corporate sustainability at a luxury level still — or perhaps especially — important?
There are two ways to look at that question, which is ultimately an accusation of hypocrisy. I think one response is, if we are trying to wield power and drive change, where are the powerful people? They’re right here. Those are the rich people spraying champagne on each other. If you said, We’re just going to change our light bulbs and reduce our carbon footprint, then you’d be missing the opportunity to access power. So from one perspective, we have the obligation to see if we can lean on those people and get them conscripted into the movement. I would accept criticism that said, you’re not doing that well enough. That’s fair, but we should be trying.
But then the second piece of that is this: Should they — or we — be guilty for using fossil fuels? The short answer to that is that American citizens asked for the affordably provided services that energy gives us: mobility, heat, cold beer, hot showers. We didn’t say, can you provide that in a way that will destroy civilization? We shouldn’t feel guilty for living in a fossil fuel system we didn’t create.
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And more of the week’s top news about renewable energy conflicts.
1. Nassau County, New York – Opponents of Equinor’s offshore Empire Wind project are now suing to stop construction after the Trump administration quietly lifted its stop-work order.
2. Somerset County, Maryland – A referendum campaign in rural Maryland seeks to restrict solar development on farmland.
3. Tazewell County, Virginia – An Energix solar project is still in the works in this rural county bordering West Virginia, despite a restrictive ordinance.
4. Allan County, Indiana – This county, which includes portions of Fort Wayne, will be holding a hearing next week on changing its current solar zoning rules.
5. Madison County, Indiana – Elsewhere in Indiana, Invenergy has abandoned the Lone Oak solar project amidst fervent opposition and mounting legal hurdles.
6. Adair County, Missouri – This county may soon be home to the largest solar farm in Missouri and is in talks for another project, despite having a high opposition intensity index in the Heatmap Pro database.
7. Newtown County, Arkansas – A fifth county in Arkansas has now banned wind projects.
8. Oklahoma County, Oklahoma – A data center fight is gaining steam as activists on the ground push to block the center on grounds it would result in new renewable energy projects.
9. Bell County, Texas – Fox News is back in our newsletter, this time for platforming the campaign against solar on land suitable for agriculture.
10. Monterey County, California – The Moss Landing battery fire story continues to develop, as PG&E struggles to restart the remaining battery storage facility remaining on site.
A conversation with Biao Gong of Morningstar
This week’s conversation is with Biao Gong, an analyst with Morningstar who this week published an analysis looking at the credit risks associated with offshore wind projects. Obviously I wanted to talk to him about the situation in the U.S., whether it’s still a place investors consider open for business, and if our country’s actions impact the behavior of others.
The following conversation has been lightly edited for clarity.
What led you to write this analysis?
What prompted me was our experience in assigning [private] ratings to offshore wind projects in Europe and wanted to figure out what was different [for rating] with onshore and offshore wind. It was the result of our recent work, which is private, but we’ve seen the trend – a lot of the big players in the offshore wind space are kind of trying to partner up with private equity firms to sell their interests, their operating offshore wind assets. But to raise that they’ll need credit ratings and we’ve seen those transactions. This is a growing area in Europe, because Europe has to rely on offshore wind to achieve its climate goals and secure their energy independence.
The report goes through risks in many ways, including challenging conditions for construction. Tell me about the challenges that offshore wind faces specifically as an investment risk.
The principle behind offshore wind is so different than onshore wind. You’re converting wind energy to electricity but obviously there are a bunch of areas where we believe it is riskier. That doesn’t mean you can’t fund those projects but you need additional mitigants.
This includes construction risk. It can take three to five years to complete an offshore wind project. The marine condition, the climate condition, you can’t do that [work] throughout the year and you need specialized vehicles, helicopters, crews that are so labor intensive. That’s versus onshore, which is pre-fabricated where you have a foundation and assemble it. Once you have an idea of the geotechnical conditions, the risk is just less.
There’s also the permitting process, which can be very challenging. How do you not interrupt the marine ecosystem? That’s something the regulators pay attention to. It’s definitely more than an onshore project, which means you need other mitigants for the lender to feel comfortable.
With respect to the permitting risk, how much of that is the risk of opposition from vacation towns, environmentalists, fisheries?
To be honest, we usually come in after all the critical permitting is in place, before money is given by a lender, but I also think that on the government’s side, in Europe at least, they probably have to encourage the development. And to put out an auction for an area you can build an offshore wind project, they must’ve gone through their own assessment, right? They can’t put out something that they also think may hurt an ecosystem, but that’s my speculation.
A country that did examine the impacts and offer lots of ocean floor for offshore is the U.S. What’s your take on offshore wind development in our country?
Once again, because we’re a rating agency, we don’t have much insight into early stage projects. But with that, our view is pretty gloomy. It’s like, if you haven’t started a project in the U.S., no one is going to buy it. There’s a bunch of projects already under construction, and there was the Empire Wind stop order that was lifted. I think that’s positive, but only to a degree, right? It just means this project under construction can probably go ahead. Those things will go ahead and have really strong developers with strong balance sheets. But they’re going to face additional headwinds, too, because of tariffs – that’s a different story.
We don’t see anything else going ahead.
Does the U.S. behaving this way impact the view you have for offshore wind in other countries, or is this an isolated thing?
It’s very isolated. Europe is just going full-steam ahead because the advantage here is you can build a wind farm that provides 2 or 3 gigawatts – that’s just massive. China, too. The U.S. is very different – and not just offshore. The entire renewables sector. We could revisit the U.S. four or five years from today, but [the U.S.] is going to be pretty difficult for the renewables sector.
What I’m hearing from developers and CEOs about the renewable energy industry after the Inflation Reduction Act
As the Senate deliberates gutting the Inflation Reduction Act’s clean electricity tax credits, renewable energy developers and industry insiders are split about how bad things might get for the sector. But the consensus is that things will undoubtedly get worse.
Almost everyone I talked to insisted that solar and wind projects further along in construction would be insulated from an IRA repeal. Some even argued that spiking energy demand and other macro tailwinds might buffer the wind and solar industries from the demolition of the law.
But between the lines, and beneath the talking points and hopium, executives are fretting that lots of future investments are in jeopardy. And the most pessimistic take: almost all projects will have their balance sheets and time-tables impacted in some way that’ll at minimum increase their budget costs.
“It’s hard to imagine, if the legislation passes in its current form, that it wouldn’t impact all projects,” said Rob Collier, CEO of renewable energy transaction platform LevelTen.
Even industry analysts with the gloomiest views of the repeal say there’s plenty of projects that will keep chugging along and might even become more valuable to investors if they’re close enough to construction or operation. This aligns with recent analysis from BloombergNEF, which found the House bill would diminish our nation’s renewables build-out – but not entirely end its pace.
“The more useful way to break down which project may be hit the hardest is where the projects are going to fall in their development life-cycle,” Collier said. “Projects that have either started construction or have the ability to start construction … are going to very likely rise in terms of their appeal and attractiveness and those projects will be at a premium, if they’re able to skate through the legislative risk and qualify for tax credits.”
There is a more optimistic industry view that believes increased project costs will just be passed along to consumers via higher electricity prices. The American people will in essence have to pick up the tab where the federal tax code left it. Optimists also cite the increased use of power purchase agreements, or PPAs, between renewables developers and entities who need a lot of electricity, like big tech companies. By signing these PPAs, buyers are subsidizing the construction of projects but also insulating themselves from the risk of rising electricity prices.
The most bullish perspective I heard was from Nick Cohen, the CEO of Doral Renewables, who told me deals like these combined with rising premiums for quick energy on the grid may obviate lost credits in a “zero-incentive environment.”
“It’s not the end of the world,” Cohen told me. “If you’re in construction or you’re going to be in construction very soon, you’re fine.”
But Collier called Cohen’s prediction an “experiment” in customers’ willingness to pay for new energy: “If we’re talking about 40%, 50%, 60% of a project’s capital stack now being at risk because of tax credits, those are pretty large price increases.”
I spoke to multiple companies that have been inking massive deals as this legislation has progressed — although many were not nearly as sanguine about the industry’s future prospects as Doral. Like rPlus Energies, which disclosed last week that it closed a commitment for more than $500 million in tax equity investments for a solar and storage project in Utah. rPlus CEO Luigi Resta told me that the legislation “certainly has posed concern from our investors and from the organization” but the project was so far along that the tax equity investment market wasn’t phased by the bill.
“Many people in my company, myself included, have been doing this for more than 20 years. We’ve seen the starts and stops related to ITC and PTC in solar and wind, in multiple cycles, and this feels like another cycle,” Resta told me. “When the IRA passed, everybody was exuberant. And now the runway looks like it may have a cliff. But for us, our mantra since the beginning of the year has been ‘proceed with caution, preserve and protect.’”
However, crucially, it is important to focus on how that caution looks: Resta told me the company has completely paused new contracting while the company is completing the projects it is currently developing.
One government affairs representative for a large and prominent U.S. renewables developer, who spoke on the condition of anonymity to preserve relationships, told me that “whatever rollback occurs will just result in higher electricity prices over time.” In the near term, the only language that would truly gut projects in progress today would be “foreign entity of concern” restrictions that would broadly impact any component even remotely connected to Chinese industries. Similar language all but kneecapped the entire IRA electric vehicle consumer credit.
“It included definitions of what it means to be a foreign company that were really vague,” the government affairs representative said. “Anyone who does any business with China essentially can’t benefit from the credit. That was a really challenging outcome from the House that hopefully the Senate is going to fix.” If this definition became law, this source said, it would be the final straw that “freezes investment” in renewable energy projects.
Ultimately, after speaking to CEO after CEO this week, I’ve been left with an impression that business activity in renewables hasn’t really subsided after the House bill passed, and that it’ll be the Senate bill that undoubtedly defines the future of renewable energy for years to come.
Whether that chamber remains the “cooling saucer” it once was will be the decider.