Apple Goes Full Climate Warrior After Trump’s Paris Climate Exit

Apple offered a $1 billion green energy bond Tuesday shortly after the company’s CEO criticized President Donald Trump for bowing out of the Paris climate accord.

Apple’s tax-exempt bond is expected to finance various clean energy and environmental projects. The tech company’s green bond is the first offered since Trump withdrew from the climate deal earlier this month.

The iPhone producer issued its first green bond of $1.5 billion after former President Barack Obama signed the non-binding agreement in 2015, which obligates America to reduce 28 percent of greenhouse gasses by 2030. The second green bond merely assures the foreign government that the U.S. is still committed to meeting Paris’ obligations, Apple officials said.

“Leadership from the business community is essential to address the threat of climate change and protect our shared planet,” Lisa Jackson, Apple’s vice president of environment, policy, said in a statement announcing the decision.

Green bonds have grown in popularity during the last few years, especially in 2016, when companies issued $81 billion of green bonds, which is double the number issued in 2015, according to Climate Bonds Initiative, a project founded to promote environmental causes.

Apple directed $442 million of last year’s bond to 16 different projects from renewable energy to recycling. The Silicon Valley company generates significant tax benefits from its sizable green energy projects, especially the Apple Energy, a subsidiary company that produces and sells solar power.

The company acquired tax credits last year after kick-starting the subsidiary, which won federal approval from the Federal Energy Regulation Commission in 2016 to start selling excess energy from its various California and Nevada solar farms. Instead of buying solar electricity from another operator, FERC’s approval gave Apple the ability to sell the juice from its own clean power plants.

Apple’s strategy bolstered CEO Tim Cook’s environmental credentials, gave them some independence from the broader U.S. electric grid, and allowed the company to take advantage of the investment tax credit (ITC), which helped reduce Apple’s tax burden. The credit gives breaks to owners of solar projects worth 30 percent of project costs.

Cutting the Paris agreement causes solar and wind power to be deployed more slowly, according to John Sterman, a professor at the MIT Sloan School of Management and senior advisor at ClimateInteractive, a project that crunches the numbers for those involved in the climate deal.

Read more at Daily Caller

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Comments (5)

  • Avatar

    Sonnyhill

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    Apple has approximately $250 billion that will likely be repatriated under Trump’s tax cuts. So why has Apple gone to the bond market? Shouldn’t stockholders just rubber stamp green investments and keep the bounty for themselves? Why does green energy need such huge tax incentives? Let the rich Greenies buy the expensive wind and solar power. Earn a pass to the Garden of Eden . I’ll take my chances with the invisible hand.

    Reply

  • Avatar

    Spurwing Plover

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    There’s a worm in apples core and No Thanks i dont want this apple too wormy

    Reply

  • Climate Change – Frase

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    […] There has been a lot in the news recently about the climate and the Paris agreement, so I thought I would try to l (climatechangedispatch.com) […]

    Reply

  • Avatar

    Amber

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    Granny Smith is so green making phones that are obsolete every few years . Very green .
    Does Granny think the climate can be adjusted to someone’s liking by changes to a trace gas who’s very presents encourages plant and tree growth ?
    Stick to your knitting Granny is never a bad choice .

    Reply

  • Avatar

    David Lewis

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    The opportunity to invest in the Green Energy Bond will again validate an old saying. A fool and his money are soon parted.

    Reply

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