Warren Buffett is spending billions to make Iowa 'the Saudi Arabia of wind' - but climate change isn't the reason
- Warren Buffett is spending billions to turn Iowa into "the wind capital of the world, the Saudi Arabia of wind," he told the Financial Times.
- However, Berkshire Hathaway's billionaire boss isn't investing in green energy to cut carbon emissions or combat climate change, but because of government incentives.
- "We wouldn't do [it] without the production tax credit we get," he said.
- Buffett is wary of companies pursuing social and environmental goals, arguing it is hard to assess whether they are truly doing good, executives shouldn't funnel shareholders' money into peripheral projects, and structural changes have costs that are often shared unevenly.
Warren Buffett is spending billions to turn Iowa into "the wind capital of the world, the Saudi Arabia of wind," he told the Financial Times.
However, Berkshire Hathaway's billionaire boss isn't emulating Greta Thunberg - leading the charge on climate change, cutting carbon emissions at any cost. Instead, government incentives are fueling his investments in renewable energy.
"We wouldn't do [it] without the production tax credit we get," he told the newspaper.
One of Berkshire's businesses, MidAmerican Energy, owns and operates more than 2,600 wind turbines in Iowa. Those generate over 50% of the electricity it provides to customers in the state each year. Moreover, it is currently expanding capacity with the goal of satisfying 100% of its Iowa customers' annual energy needs using renewable sources.
MidAmerican may be betting big on green energy, but Buffett is wary of companies pursuing social and environmental goals. He told the Financial Times that executives shouldn't funnel shareholders' money into peripheral projects, and it was difficult to assess whether businesses are truly doing good.
"It's very hard to evaluate what they're doing," the so-called Oracle of Omaha told the newspaper. "I like to eat candy. Is candy good for me or not? I don't know."
Moreover, someone has to shoulder the cost of sweeping changes, and the burden is often shared unevenly, Buffett said.
"If people want us to junk our coal plants, either our shareholders or the consumer is going to pay for it," he told the Financial Times. If consumers pay, those living in coal-reliant regions would foot the bill while others pay nothing, he added.
Public officials should oversee structural changes and mitigate their costs, Buffett argued. "The government ... has to play the part of modifying a market system."
