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Tag: Energy subsidies

  • Joe Biden paid $89 million to boost electric motorcycle production. It’s failing.

    In 2024, President Joe Biden’s Energy Department awarded $1.7 billion in grants to increase domestic manufacturing of electric vehicles (E.V.s), including $89 million to Harley-Davidson to expand its manufacturing plant in Pennsylvania for electric motorcycle production. At the time, Energy Secretary Jennifer Granholm claimed the funding would “ensure that our automotive industry stays competitive.” Then-Sen. Bob Casey (D–Pa.) championed the grant, with his office declaring that it would “help Harley Davidson make investments necessary to hit its goal of producing more zero-emission motorcycles.”

    More than a year later, it appears that this funding plan is failing.

    Despite the $89 million in government subsidies provided to LiveWire, which was initially launched as part of Harley-Davidson but has since spun off, the company has sold only 55 electric motorcycles in the second quarter of 2025, a 65 percent decline compared to the same quarter in 2024. In the second quarter of 2025, LiveWire’s electric motorcycle business yielded $800,000 in revenue. Overall, in the second quarter of 2025, the company generated $5.9 million in consolidated revenue from its electric motorcycles and electric bikes.

    LiveWire has operated at a loss since its founding in 2021. After peaking at $46.83 million in 2022, annual revenue has declined for two consecutive years, dropping 43 percent from the company’s peak year in 2022. The company has never had a profitable quarter, a trend that is expected to continue through 2025.

    While it’s projected sales of up to 3,000 electric motorcycles over the past two years, LiveWire has sold only 2,418 electric motorcycles since its inception in 2021. Last year, the company sold just 612 motorcycles, falling short of its 2023 sales of 660 machines and well below its initial 2024 projection of 1,000 to 1,500 bikes. Despite a history of missing sales targets, LiveWire again projected sales of 1,000 to 1,500 electric motorcycles for 2025.

    A significant appeal of gas-powered motorcycles lies in the owner’s ability to customize their bike. By design, electric motorcycles are quiet and difficult to modify.

    Although the upfront cost of LiveWire electric motorcycles is significantly lower than most new Harley-Davidson gasoline models, LiveWire’s financials suggest that the market has clearly expressed its preference. The $89 million grant to Harley-Davidson is only one in a long list of failed, costly green energy projects funded by the Biden administration, which also includes a $9.63 billion loan to Ford to build three manufacturing plants for the company’s E.V. batteries in Tennessee and Kentucky. Only one of these factories has been built—and has yet to roll out batteries—while the other two have no set opening date.

    In May, amid a continued decline in sales, Harley-Davidson suspended its full-year financial forecast due to the imposition of President Donald Trump’s tariffs. If the company’s second-quarter financial outlook is any indication of future performance, there will be little relief to come. In the second quarter of 2025, Harley-Davidson’s revenue dropped 19 percent year-over-year, with global motorcycle shipments down 28 percent. To date, tariffs have cost the company $17 million in 2025.

    Like many other projects before it, government funding has not helped LiveWire turn a profit. It has instead artificially prolonged its financial runway and potentially discouraged disruptive thinking and entrepreneurial spirit.

    Tosin Akintola

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  • Governments gather in Canada in bid to boost biodiversity

    Governments gather in Canada in bid to boost biodiversity

    BOSTON — Amid warnings that biodiversity is in freefall, environmental leaders will gather in Montreal to hammer out measures aimed at shoring up the world’s land and marine ecosystems and coming up with tens of billions of dollars to fund these conservation efforts.

    Delegates from about 190 countries will assemble for nearly two weeks, starting Wednesday, at the United Nations Biodiversity Conference, or COP15, to finalize a framework for protecting 30% of global land and marine areas by 2030. Currently, 17% of terrestrial and 10% of marine areas are protected.

    The proposed framework also calls for reducing the rate of invasive species introduction and establishment by 50%, cutting pesticide use in half and eliminating the discharge of plastic waste.

    The goals — more ambitious than earlier ones that have mostly gone unmet — are expected to be at the heart of the meeting debate. But not far behind will be the issue of finance, with developing countries likely to push for significant monetary commitments before signing onto any deal.

    The draft framework calls for raising $200 billion or 1% of the world’s GDP for conservation by 2030. Another $500 billion annually would come from doing away with the politically-sensitive issue of subsidies that make food and fuel cheaper in many places.

    “The world is crying out for change, watching if governments seek to heal our relationship with the nature, with the planet,” Elizabeth Maruma Mrema, the executive secretary of the U.N. Convention on Biological Diversity, said at a November news conference. “The current state of biodiversity is dire with the loss of biodiversity at unprecedented levels in our history.”

    The United Nations conference comes less than a month after countries gathered to tackle climate change, agreeing for the first time to pay poor countries for the damage being caused by a warming planet.

    Climate change coupled with habitat loss, pollution and development have hammered the world’s biodiversity, with one estimate in 2019 warning that a million plant and animal species face extinction within decades — a rate of loss 1,000 times greater than expected. Humans use about 50,000 wild species routinely, and 1 out of 5 people of the world’s 7.9 billion population depend on those species for food and income, the report said.

    “We’re clearly losing biodiversity all around the world. Our ecosystems — that’s our forests, our grasslands, our wetlands, our coral reefs — are all degrading,” said Robert Watson, who has chaired past U.N. science reports on climate change and biodiversity loss. “We’re losing species; some are going extinct and others where the population numbers have even halved. We’re losing genetic diversity within species. So we’re clearly affecting biodiversity badly.”

    Brian O’Donnell, the director of the conservation group Campaign for Nature, noted how he had lived during a time of “climate stability and natural abundance” but fears that won’t be the same for his daughter and her generation.

    “We have to ask, ‘Will they be able to have well-functioning natural areas to sustain them? Will they benefit from what nature has given us — storm protection, pollination, clean water, food, abundant wildlife? Or will they face the remnants of a once thriving natural system?’” O’Donnell said.

    “Will the burden of climate breakdown and nature degradation be placed on the young people of the planet, the vulnerable, and the poor, those least responsible for creating the crises?” he asked.

    The challenge, though, will be convincing governments that they should do more to preserve and protect biodiversity and to follow through on their commitments. It will be especially challenging to make the case for cash-strapped developing countries who often need to spend money on more pressing concerns.

    “It would be a big deal if a lot of nations commit to 30%,” said Duke University ecologist Stuart Pimm, referring to the draft goal to protect 30% of the planet for conservation. President Joe Biden has already laid out a vision to conserve 30% of U.S. land and waters by 2030, and then-United Kingdom prime minister Boris Johnson pledged to protect 30% of its land by 2030.

    The track record of this convention is not great.

    Governments agreed to a set of targets back in 2010 but only six of the 20 were partially met by a 2020 deadline. Some experts argue delegates should be exploring why the world fell short on so many targets rather than setting even more ambitious ones.

    “You can agree inside your environmental bubble … and that’s probably what happened back in 2010,” U.N. Environment Program Executive Director Inger Andersen told The Associated Press. “But we actually need to have agriculture as part of the conversation. We need to have the financing system as part of the conversation.”

    Susan Lieberman, vice president of international policy at Wildlife Conservation Society, said part of the problem is that, so far, there hasn’t been “sufficient accountability and monitoring” of the goals.

    “It’s really important to put in place a monitoring framework,” she said. “Countries need to report. There needs to be accountability … and the targets need to be clear enough that governments can monitor and report on them.”

    Among the goals is to close the estimated $700 billion a year gap in what is spent on biodiversity. Part of the problem, U.S. Assistant Secretary of State Monica Medina said, is that the world not putting a sufficient price on nature.

    “We’re desperately trying to change people’s mindset about nature, and the fact that the things that we take for granted really aren’t free and we need to start actually accounting for their value and for the loss of their value … when development happens,” said Medina, who is leading the U.S. delegation at the conference.

    The funding hopes hinge heavily on whether countries reform their subsidies for industries that pollute or otherwise damage the natural world. Delegates face stiff opposition from parties, such as the fossil fuel sector, that would lose out if the reforms were enacted. Environmental ministers also have little influence over whether their countries take this risky step — one that’s been known to spark unrest and bring down governments.

    Watson, who has chaired past U.N. science reports, said reform is needed. “We need to get rid of subsidies. We need to draw down the subsidies on agriculture, fisheries, mining, energy, transportation, and we need to use that money for sustainable activities,” he said. “There’s probably over a trillion dollars a year in what we call direct subsidy, direct subsidies on fossil fuel, on fisheries, agriculture, etc. There’s also about $4 trillion of indirect subsidies.”

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    Associated Press science writer Christina Larson contributed to this report from Washington, D.C.

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    Follow Michael Casey in Twitter: @mcasey1

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    Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

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  • Macron welcomes French questions on climate ahead of COP27

    Macron welcomes French questions on climate ahead of COP27

    PARIS — French President Emmanuel Macron released a selfie video on social media platforms Saturday asking the public to send him questions about what France should do about climate change and biodiversity.

    Thousands of responses quickly poured in. Several were hostile or questioned his sincerity, but they also included rigorous questions about fossil fuel subsidies, sea pollution and nuclear energy.

    Macron, who will take part in the U.N. climate talks opening in Egypt on Sunday, promised to respond to the questions starting next week.

    In the video, he read from a letter from the public asking why he doesn’t declare an “environmental state of emergency.” He said the letter “prompted me to ask questions about what we are doing about this ecological challenge, the challenge of our generation.”

    Early in his presidency, Macron pledged to make tackling climate change issues a top priority, but he has come under widespread criticism for not instituting enough tangible change.

    At the COP27 talks in Egypt on Monday, Macron is expected to discuss climate-related financing, protecting forests, Africa’s Great Green Wall, and other climate adaptation measures, according to his office.

    He’s also expected to raise the importance — and challenge — of sticking to climate commitments as Europe faces an energy crisis stemming from Russia’s war in Ukraine.

    Those are all key issues at the climate talks at the Red Sea coastal resort of Sharm el-Sheikh, which are expected to include more than 120 world leaders and run from Nov. 6-18.

    Laurent Fabius, the French diplomat who presided over the U.N. talks in 2015 that produced the Paris climate agreement, made a plea Saturday to those gathering in Egypt: “Keep in mind that the most beautiful announcements mean nothing if they’re not backed up by precise and rapid policies and actions.”

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    Follow AP’s climate and environment coverage at https://apnews.com/hub/climate-and-environment

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  • Haiti at breaking point as economy tanks and violence soars

    Haiti at breaking point as economy tanks and violence soars

    PORT-AU-PRINCE, Haiti — Daily life in Haiti began to spin out of control last month just hours after Prime Minister Ariel Henry said fuel subsidies would be eliminated, causing prices to double.

    Gunshots rang out as protesters blocked roads with iron gates and mango trees. Then Haiti’s most powerful gang took it a step further: It dug trenches to block access to the Caribbean country’s largest fuel terminal, vowing not to budge until Henry resigns and prices for fuel and basic goods go down.

    The poorest country in the Western hemisphere is in the grips of an inflationary vise that is squeezing its citizenry and exacerbating protests that have brought society to the breaking point. Violence is raging and making parents afraid to send their kids to school; fuel and clean water are scarce; and hospitals, banks and grocery stores are struggling to remain open.

    The president of neighboring Dominican Republic described the situation as a “low-intensity civil war.”

    Life in Haiti is always extremely difficult, if not downright dysfunctional. But the magnitude of the current paralysis and despair is unprecedented. Political instability has simmered ever since last year’s still-unsolved assassination of Haiti’s president; inflation soaring around 30% has only aggravated the situation.

    “If they don’t understand us, we’re going to make them understand,” said Pierre Killick Cemelus, who sweated as he struggled to keep pace with thousands of other protesters marching during a recent demonstration.

    The fuel depot blocked by gangs has been inoperable since Sept. 12, cutting off about 10 million gallons of diesel and gasoline and more than 800,000 gallons of kerosene stored on site. Many gas stations are closed, and others are quickly running out of supplies.

    The lack of fuel recently forced hospitals to cut back critical services and prompted water delivery companies to shut down. Banks and grocery stores also are struggling to stay open because of dwindling fuel supplies — and exorbitant prices — that make it nearly impossible for many workers to commute.

    A gallon of gasoline costs $30 on the black market in Port-au-Prince and more than $40 in rural areas, Desperate people are walking for miles to get food and water because public transportation is extremely limited.

    “Haiti is now in complete chaos,” said Alex Dupuy, a Haiti-born sociologist at Wesleyan University. “You have gangs basically doing whatever they want, wherever they want, whenever they want with complete impunity because the police force is not capable of bringing them under control.”

    Henry’s de-facto government “doesn’t seem to be fazed at all by the chaos and is probably benefiting from it because it allows him to hold on to power and prolong as long as possible the organization of new elections,” Dupuy said.

    Gangs have long wielded considerable power in Haiti, and their influence has only grown since the July 2021 assassination of President Jovenel Moïse.

    Gangs control more than 40% of Port-au-Prince, the U.N. has estimated. They are fighting to control even more territory, killings hundreds of Haitians in recent months — including women and children — and driving away some 20,000 people from their homes. Kidnappings have spiked.

    Henry has pledged to hold elections as soon as it’s safe to do so, writing in a speech read at the United Nations General Assembly on Sept. 24 that he has “no desire to stay in power longer than necessary.”

    “My country is going through a multidimensional crisis whose consequences threaten democracy and the very foundations of the rule of law,” he said. He condemned widespread looting and violence, and said those responsible “will have to answer for their crimes before history and before the courts.”

    U.S. President Joe Biden, also speaking at the U.N., said Haiti faces “political-fueled gang violence and an enormous human crisis.”

    From 2004 until 2017, U.N. peacekeepers bolstered the country’s security and helped rebuild political institutions after a violent rebellion ousted former President Jean-Bertrand Aristide. But for now, any foreign intervention in Haiti is off the table. Local political leaders have repudiated the suggestion of outside help, noting that U.N. peacekeepers in Haiti sexually abused children and sparked a cholera epidemic more than a decade ago that killed nearly 10,000 people.

    The first round of protests in mid-September prompted France and Spain to close their embassies and banks to shut down in the capital of Port-au-Prince. Protesters attacked businesses, the homes of well-known politicians and even warehouses of the United Nations’ World Food Program, stealing millions of dollars’ worth of food and water.

    Protests have since grown bigger. Tens of thousands of people recently marched in Port-au-Prince and beyond, including the cities of Gonaives and Cap-Haitien in the north. They waved leafy green branches and chanted, “Ariel has to go!”

    Primary school teacher Jean-Wilson Fabre joined a recent protest as he ducked into a side street to avoid a cloud of tear gas thrown by police trying to control the crowd.

    “He’s not doing anything,” he said of the prime minister.

    The 40-year-old father of two sons lamented the lack of food and water, the rise of kidnappings and the growing power of gangs: “No one is crazy enough to send their kids to school in this situation. They will not be safe.”

    Fabre is one of millions of parents who refused to send their children to school even though the government announced an Oct. 3 return to class as scheduled in an attempt to restore some normalcy amid an increasingly unstable situation.

    Haiti’s courts also were slated to reopen on Oct. 3, but the country’s Bar Federation rejected an invitation from the prime minister to talk about the issue days before, noting that gangs still occupy a main courthouse in Port-au-Prince, among other problems.

    “Under Ariel, things have gotten worse and worse,” said Merlay Saint-Pierre, a 28-year-old unemployed mother of two boys who joined a recent protest wearing a T-shirt emblazoned with a middle finger.

    Hundreds of people have spent hours in line each day just to buy buckets of water. Delivery trucks cannot go into neighborhoods because of roadblocks.

    “I’m scared of this water,” said 22-year-old Lionel Simon, noting he would use it to wash clothes and add chlorine before drinking it.

    At least eight people have died of cholera in recent days and dozens more have been treated, according to local health officials who urged protesters and gang leaders to allow fuel and water to flow into neighborhoods.

    But Simon was not worried about cholera. His biggest concerns are gangs and an increase in young children carrying guns.

    “We don’t know if life will go back to normal,” he said. “If you die today, you don’t even know if you’re going to make it to a morgue. You could be left in the street for dogs and animals to eat you. This is how crazy the city has become.”

    Dupuy, the Haitian expert, said it’s unlikely Henry would step down since there is no international pressure for him to do so. He worried there is no clear solution as the situation spirals: “How much more boiling point can there be?”

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    Coto reported from San Juan, Puerto Rico.

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