The civilised world is actively implementing a green transition, and it is truly inspiring to be at the forefront of these changes in the energy landscape. The United States is one of the leaders in this process. With significant investments in renewable energy, innovative technologies, and broad support at the federal and local levels, the country is demonstrating a strong commitment to reducing emissions and fighting climate change.
California, as an example, is a leader in adopting green initiatives and setting ambitious targets for emissions reduction and clean energy development. ‘The Redwood State can afford a green deal because it is one of the richest states in the US, giving it access to significant financial resources for green initiatives. There is strong political will and support for alternative energy in the Sunshine State, which allows it to set ambitious goals.
The Golden State has a well-developed infrastructure that facilitates the introduction of new technologies and resources. The state has a carbon capitalisation programme that provides funding for green projects through emissions auctions. In addition, California is implementing social programmes aimed at supporting the poorest communities, which helps ensure a fair transition to a green economy.
California vs New Mexico: “Green ambitions of the richest and poorest states in the US
These factors allow California to pursue ambitious green deals that at first glance seem unaffordable for less developed states like New Mexico. The latter, unlike California, has a smaller population and the highest poverty rate in the country, at 18.2%, while in California it is 11.8%. The median income in New Mexico is approximately $52,000 per year, while in California it is $71,000.
But despite these challenges, the Land of Enchantment has adopted an ambitious green energy policy. In 2019, Governor Grisham signed the Energy Transition Act into law. This initiative is designed to reduce dependence on coal, promote renewable energy production, and economically support communities affected by coal plant closures.
A year ago, Governor Grisham signed an executive order to accelerate the state’s transition to a clean energy economy. This document is aimed at modernising infrastructure and training workers for jobs in renewable energy and other sectors.
What makes New Mexico a national leader in the green transition
Developed in collaboration with community organisations, labour unions, energy groups and advocates, the ETA makes New Mexico a national leader in the clean energy transition. It is one of the most ambitious renewable energy laws in the United States.
The law sets a target of 50% renewable energy by 2030 for New Mexico’s investor-owned utilities and rural electric cooperatives. In addition, it aims to achieve 80% renewable energy by 2040, setting zero-carbon resource standards for utilities by 2045 and for rural electric cooperatives by 2050.
The ETA is shifting New Mexico from coal to clean energy, enabling more renewable energy production and lowering costs for consumers, and providing tens of millions of dollars in economic and job support for communities affected by coal plant closures, as well as developing renewable electricity replacements in San Juan County.
What are the concerns about New Mexico’s green transition?
However, there are concerns about the potential economic impact on the residents of the Land of Enchantment, given the state’s high poverty rate and the difficulty of transitioning to a green economy. After all, New Mexico has the highest poverty rate in the country, and changes in energy policy could have an uneven impact on the most vulnerable populations.
The transition from fossil fuels to renewable energy may cause temporary labour market instability, especially for workers in traditional energy industries. Of course, the transition to a green economy will require new skills and knowledge. It may take time and additional resources to retrain workers and provide jobs in new industries.
It is also possible that communal and social programmes may not be sufficiently funded to support the communities most affected by the transition.
Finally, the cost of introducing new technologies and upgrading infrastructure could lead to higher electricity bills, which would be a heavy burden for low-income residents. However, the recent New Mexico Supreme Court ruling in favour of a community solar programme is an important precedent that offers hope for improvement.
The law is on the side of solar for New Mexico communities
The New Mexico Supreme Court recently issued a landmark ruling in favour of the state’s community solar programme, upholding the current rules and paving the way for further implementation. The court sided with the Public Regulation Commission, along with a coalition of plaintiffs who intervened in the appeal, including the Coalition for Community Solar Access, the New Mexico Sustainable Communities Coalition, the City of Las Cruces, New Energy Economy, and the New Mexico Renewable Energy Industries Association.
This decision allows the programme to continue as planned, providing benefits to homeowners, renters and businesses. The Solar Energy Act, passed in 2021, allows residents to subscribe to electricity from community solar installations, which can provide utility savings of up to 30%. Low-income subscribers will benefit especially.
This solution contributes to the democratisation of solar energy and creates a sustainable energy network. The programme expands access to clean energy, reducing costs for consumers and supporting sustainable development. The court’s decision is a triumph for renewable energy advocates and helps ensure a fair energy landscape.
What the New Mexico case means for the global community
This decision can serve as a progressive precedent for the global community. It illustrates how court decisions can support innovative renewable energy programmes that reduce costs for consumers and contribute to a just energy transition. It also underscores the importance of inclusive policies that provide benefits to disadvantaged communities. This case study may inspire other regions to implement similar programmes that will contribute to sustainable development and environmental protection at the global level.
It is likely that the adoption of the ETA Energy Transition Act in New Mexico is of great importance not only for the state and national economy, but also for the global community. It sets high standards for renewable energy, facilitates the transition from coal to clean energy and reduces costs for consumers.
For New Mexico’s economy, the new energy paradigm means new jobs in the renewable energy sector, economic support for communities affected by coal plant closures, and the development of new power plants. This will contribute to the growth and diversification of the state’s economy.
For the global community, New Mexico’s example can be an inspiration, showing how regions with high poverty rates can successfully implement renewable energy sources. This may encourage other states to adopt similar laws aimed at reducing emissions and combating climate change at the global level.
Tetyana Morarash
