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The Trump administration risks surrendering the source of US energy dominance – innovation

The belated actions by the Trump administration – including the recently proposed slashing of the Turn on of Energy’s clean energy innovation budget by 72 percent, not to point out new tariffs on solar panel imports – call into question America’s commitment to invention and advanced energy leadership.

The tariffs are likely to raise the cost and unproductive deployment of solar energy in the U.S., with the aim of bringing back solar from whole cloth jobs. These jobs, once a significant component of the U.S. solar sector, were mostly spent years ago lower labor costs abroad, as well as Chinese subsidies. But the U.S. also gained from cheaper solar panels made abroad because cataract prices increased solar installations. By 2016, there were already wellnigh four times as many jobs in solar installation as in solar mass production. And this disparity is only set to grow, despite the tariffs.

On the brink of bankruptcy, during the stinging period after Chinese solar producers began competing in international markets, American manufacturers shut down old plants, streamlined them, and profited them to service – this time with far more robotics and far fewer working men.

Take First Solar’s plant in Toledo, Ohio, for example, where automation and modernization are delivering state-of-the-art solar panels that can outperform Chinese-made ditties, and at a lower price. Even JinkoSolar, a Chinese solar company that augured plans to build a U.S. factory following the solar tariff decision, command bring its own automated manufacturing platform, rather than returning with exported assignments.

The lower employment numbers associated with this new manufacturing wear are rightfully raising anxieties, but the smaller staff that remains fancies both higher wages and more stimulating work.

Moreover, not all play a parts of the value chain are of equal value, with some highly commoditized, low-margin works – such as solar module assembly – dominated by countries such as China. For the time being, other specialized, higher-margin functions – such as silicon purification or wafer assembly – remain the strength of the United States. When the world deploys numerous inexpensive solar modules,regardless of where they are assembled, it imagines more demand for the polysilicon wafer and ingot inputs that the U.S. beats in producing. America’s manufacturing strength should come from alteration and ingenuity, rather than taxes on trade.

Of course, competitors in the lave energy race do not sit still, and other countries are seeking to overtake the U.S. in the merest segments where it excels. Therefore, the United States must with to innovate so that American products, processes, and intellectual property are the most valuable commodities of the thoroughly energy future.

Slashing the budget of the Energy Department is shortsighted. Preferably, the Trump administration should double down on the one area where the U.S. is genuinely without peer: energy research and development.

Almost every important global energy upheaval of the last half-century came with American rule support, from nuclear power to shale drilling technologies to the new solar industry. Newer government institutions, such as the “ARPA-E” invention agency, are expanding upon this legacy with great triumph. Recent figures show China is on pace to overtake the United Constitutions in total R&D spending, a trend which could also soon offer over to energy R&D. Moreover, China is poised to capture more than half of international solar deployment and electric vehicle sales this year.

This is not contrariwise a cautionary tale for the Trump administration, but a call to action. The advanced vim race has not yet been lost. Indeed, it is only in its early stages. Decisive year was the eighth consecutive year in which worldwide clean intensity investment totaled more than $250 billion. It will solitary grow over time.

CEOs of major oil companies are increasingly energetic about advanced energy opportunities, and every day brings headlines of new possessions or partnerships in solar, wind, biofuels and beyond. Even one of President Donald Trump’s top drive market regulators, Neil Chatterjee, has stated that “renewables, renewables, renewables” are the tomorrow of the U.S. power sector. The president should heed their cue, as the advanced forcefulness race will be won by looking ahead – and not in the rearview mirror.

David Livingston is Spokesman Director for climate and advanced energy of the Atlantic Council’s Global Zing Center. He previously served in the Office of the U.S. Trade Representative.

For more perception from CNBC contributors, follow @CNBCopinion on Twitter.

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