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Richard Brooks's picture
Co-Founder and Lead Software Engineer Reliable Energy Analytics LLC

Inventor of patent 11,374,961: METHODS FOR VERIFICATION OF SOFTWARE OBJECT AUTHENTICITY AND INTEGRITY and the Software Assurance Guardian™ (SAG ™) Point Man™ (SAG-PM™) software and SAGScore™...

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  • Sep 14, 2020
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Google and other corporate buyers are committing to carbon free energy goals for their operations. This seems like a noble goal to actively address climate change, which deserves public recognition and support, IMO. I also wonder, could this move by Google also be a strategic business decision to hedge against paying carbon pricing/taxes? If so, this would be a terrific hedge against paying higher energy prices that would certainly accompany all use of fossil fuels, because this would enable a Company to prove they consume only carbon-free energy, and therefore are not subject to carbon taxes. It would seem that corporate/industrial buyers would be well advised to follow Google's lead and hedge against the prospects of paying higher energy prices by securing long-term green energy contracts, and avoid carbon pricing taxes, which may arrive on your doorstep in the near future.

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Matt Chester's picture
Matt Chester on Sep 14, 2020

Reminds me of them removing the 'Do no evil' motto from Google. Do I think that means they're doing evil now? Not necessarily or explicitly. And is Google just doing this to get ahead of potential carbon taxes and not out of purely altruistic means? Probably something like that. But Google is still massive enough that they're moves can influence the market, so the net is still not evil, even if it's more corporate and calculating of a decision than pure and green. 

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Richard Brooks on Sep 14, 2020

There seems to be a lot of discussion regarding carbon pricing these days, so, IMO, it would be a wise business decision to "lock in" energy prices, before any increase coming from carbon pricing. I'm guessing Google has already figured out the strategic value of hedging their power costs against the prospect of carbon pricing taxes. Maybe it's time for me to call SunRun to get those solar panels installed so that I can hedge against paying higher electricity costs due to carbon taxes. I wouldn't want to be in the "shrinking" pile of people that will be hit with the carbon tax - I suspect it's going to expensive for those that cannot prove their energy comes from renewable power sources.

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