Checking in from RE+ with Jessica Libby from KPMG

Sponsored by EDF Renewables

This special episode focusing on RE+ features insights from Jessica Libby, a Principal in the KPMG US Trade and Customs service line. Jessica shares her expert analysis of all the hottest topics from the conference, including the outlook for tariffs, news related to forced labor and the future of the United States-Mexico-Canada Agreement (USMCA). We also discuss the long-term prospects for key components of the Inflation Reduction Act -- regardless of which party takes the White House.

And in a lighter moment, Jessica kicks off the conversation by revealing that one of the 'must-see' things at this year's RE+ is sheep ... real, live sheep in the convention hall.

More resources from EDF Renewables
What We Do

Sign up for the Renewable Energy SmartBrief

Follow the show on Twitter @RenewablesPod

Transcript

(Note: This transcript was created using artificial intelligence. It has not been edited verbatim.)

Sean McMahon  00:00

This special episode of the Renewable Energy SmartPod, focusing exclusively on RE+ is brought to you by EDF Renewables. Across North America. EDF Renewables offers grid scale, distribution, scale and on site solar solutions that make solar energy more accessible and reliable than ever. Be part of the solar solution at EDF-RE.com. That website, again, is EDF-RE.com or just click on the link in today's show notes. 

What's up everyone? And welcome to the Renewable Energy SmartPod. I'm your host, Sean McMahon, and this week, we're shining a big, bright spotlight on a huge event in the solar and energy storage sector, RE+. This massive gathering is taking place in Anaheim, California right now, and I've invited some experts to come join me on the show to discuss the topics that are all the buzz at the conference. Joining me right now is Jessica Libby, a Principal in the Trade and Customs service line at KPMG US. Jessica, I appreciate you joining me from a very noisy and chaotic trade show floor. How you doing today?

Jessica Libby  01:16

Hey, Sean, thanks for having me.

Sean McMahon  01:19

Thank you for joining me. I know conferences are a really busy time with jam packed schedules. How's this week treating you so far? What's the vibe at RE+?

Jessica Libby  01:26

Yeah, RE+ is pretty exciting right now. When you bring 47,000 people together to talk about renewables and sustainability, there's a lot of energy in this conference, lots of exhibitors from across the world, lots of discussion on new pieces of legislation. Just a lot of energy, strong vibes. I saw sheep grazing under solar panels earlier today. Lots of things going on here.

Sean McMahon  01:49

Wait. Well, first of all, I love the pun. There's a lot of energy at the show. And second, are you telling me there's an exhibitor who has actual sheep under panels? 

Jessica Libby  01:58

There is actually, it's called solar grazing. Not sure if I'm plugging the company correctly or not, but it's pretty innovative. It's hard to cut the grass under solar panels. So you bring in sheep, and they do it for you. It's pretty amazing, and it's garnering a lot of interest, a lot of people around those sheep today. 

Sean McMahon  02:16

Yeah. I mean, our listeners are pretty familiar with agrivoltaics, but I'm just stunned that someone actually brought sheep into the conference sauce. So that's, that's pretty awesome. What about some of the other events I heard Smash Mouth? I think was, was in town. Did you attend that?

Jessica Libby  02:29

If only, I think, you know, as a consultant, we're heads down, working with our clients, looking at what's out there. So haven't had a chance to visit any of the concerts, but there is a lot of going on out here.

Sean McMahon  02:40

Okay, well, then getting back to what people are talking about, aside from the sheep, of course, what are some of the hot topics that everyone's buzzing about? 

Jessica Libby  02:48

Yeah, Sean, I think one of the themes we're seeing across many of the panels and really the discussions we're having with clients and at the exhibits is really around domestic content, and specifically trade in tariffs. Obviously, we had a big debate last night. Trade in tariffs was right in the forefront of those conversations, and we're seeing it are at RE+, you know, manufacturers trying to understand what benefits are there to manufacture the United States, including under the inflation Reduction Act. But what are some of the costs, maybe some of the hurdles associated with bringing manufacturing back to the United States. There's a new concept that I heard about this week called friend shoring. I'm sure we've all heard of the term onshoring, right? Friend shoring is really looking towards our trading partners and treating them equally to US domestic manufacturing. Obviously, there's no legislation around that, but I think there's a lot of buzz to say, hey, how do we bring in some of our other countries, incorporate their manufacturing capabilities as we think about renewables. 

Sean McMahon  03:45

Yeah, I think I've heard something about that, is that kind of, geopolitically speaking, looking at neighbors like Canada and things like that, where we and the EU, yeah, and the EU, not so many tensions, right? That's right. So obviously someone in your role, trading customs at KPMG, domestic content is a big deal, but what are some of the other topics? Customers or clients are either coming to you and asking questions, or you might be asking them, Hey, what are your needs?

Jessica Libby  04:07

Yeah, it's a good question. Sean, we're definitely getting a lot of questions. You know, obviously with renewables, there's a big focus on sustainability at the same time. So not only are we shifting towards green energy, but we want to do so in a responsible manner. So today, on day two of RE+, we have attended a few sessions where they're talking about human rights, and specifically the Uyghur forced labor Prevention Act, or other other types of acts that are really focused on human rights as we think about sourcing of silicon and some of these other products that are typically sourced in maybe higher risk regions, there's a lot of discussion about how, how do we do so responsibly in the in the same regard, kind of that circular economy, you know, when we are looking at the types of products that we're manufacturing, how are we disposing of them? What is the recycling associated with those products? 

Sean McMahon  04:55

And so what does that roadmap look like in terms of, you know, navigating force. Labor and other issues with regard to trade.

Jessica Libby  05:02

Yeah, it's pretty tricky right now, right? Obviously, there's a lot of discussions about a lot of these components coming from China, and China's a bit of a difficult country to get information on. But at the same regard, these companies are tasked with doing a level of due diligence to ensure that their supply chains are responsibly sourced, and so it's a it's a balance of understanding and partnering with your suppliers to make sure they're doing the right thing, such that your end product results in proper supply chain management, including responsibly sourcing these products. 

Sean McMahon  05:35

Are there any other countries on the radar? I think I saw recently that Customs and Border Patrol season panels from Mexico. So besides China, whichever knows about and kind of rerouting things to other countries in Southeast Asia, any other regions or countries?

Jessica Libby  05:47

Sean, you're, you're very much up to speed on all of the, all of the goings on us, customs. I actually attended a panel discussion today with Eric Choi and several others that were talking about the Uyghur Forced Labor Prevention Act, and specifically the instance that you're referencing is there's allegations around violations around the UFLPA, which is typically China, but in this situation, it was sourced through Mexico. So again, there are some things. The EU has recently passed a forced labor ban and several other due diligence standards around environmental provisions. So the US isn't the only country that is really focused on this. When we're talking with clients about, how do they manage this, right? It's a lot just to manage a responsible supply chain, but also do so in a manner that optimizes kind of the financials behind these energy projects, right? So it's a balance to ensuring Have you done your level due diligence? Do you feel comfortable with your supply chain? Have you optimized your US production such that you're qualifying for domestic content credits? All of those things have to be balanced appropriately, 

Sean McMahon  06:50

All right. And then any other topics out there? I know we've talked a lot about forced labor and customs and things like that, but what about tariffs or other other issues affecting your line of business at KPMG,

Jessica Libby  06:59

Yeah, tariffs are a big discussion right now. Obviously, we're in an election cycle, and that's, I think, propelling some of these discussions and just the volatility that is potentially in front of us depending on which party ends up in the next administration. In talking with our clients, we're definitely starting to help them to understand what this could look like, and what is your china, plus one strategy in particular, China seems to be at the crosshair so any additional tariffs will certainly impact China. But at the same regard, there's discussions the usmca is up for renewal in the next few years. There's a potential that that could be at risk from a trade agreement perspective, which obviously, companies have invested billions of dollars to support that trilateral trade between Canada and Mexico and the US. So it's really looking at kind of all the geopolitical factors that are associated with these renewable projects. It's understanding, do you have multiple suppliers that can fulfill those obligations? Do you have a domestic supply chain base that could support you in domestic content? The other thing I'll just mention here, and there's a lot of buzz around the inflation Reduction Act, right? That is a relatively new piece of legislation, but by far, has probably been the biggest impetus around green energy projects, billions of dollars that are going back out into industry, creating new jobs, creating new manufacturing sectors here in the United States, starting up old mills that were formally shut down to produce steel and iron. So it's been a central core part of the discussions here. The question becomes, what is going to happen in the next administration with the IRA and the one thing I will say is that there is bipartisan support as it relates to domestic manufacturing. Everybody is supportive of creating jobs for Americans, and that is a good thing. And so as we think about what the future holds, I know there's a lot of volatility, but there are some pillars that we can we can harness to ensure that we're building the right supply chain for our companies.

Sean McMahon  08:54

 Alrighty. Well, then I'm gonna ask you to kind of peek into a crystal ball here, right? There's obviously, you know, political uncertainty here in the US, geopolitical certain uncertainty everywhere, when we all come together for RA, plus next year, what do you think are going to be some of the key topics everyone's discussing?

Jessica Libby  09:08

Well, one thing I haven't mentioned is certainly AI machine learning technology, right? And that is definitely something that we're hearing a lot about, but I think we're at the infancy of exploring what that looks like as it relates to green energy and how we can use that to optimize productivity and output and things of that nature. We certainly are seeing a lot of new technologies debuted, not only to facilitate optimizing green technology, but also tracking and reporting for ESG and sustainability obligations your carbon footprint when we're putting these energy projects in place, what type of carbon footprint are we creating? So I do think that AI is going to continue to be a common theme across all of these discussions, but I think next year is really going to be where it's going to break out of the box.

Sean McMahon  09:56

 All right. Well, hey, I appreciate that prediction, and I have a feeling it'll probably be true. It seems. AI, you know, on the way up still. So hey, listen, Jessica, this has been wonderful. I appreciate you sticking with me, especially in a noisy conference background. It's not always the easiest position for a guest to be in, but you nailed it. So thank you very much.

Jessica Libby  10:12

Hey, thanks Sean for having us and really excited to be here at RE+, just

Sean McMahon  10:16

A quick reminder that today's episode was brought to you by EDF Renewables leading the charge towards a cleaner, more sustainable future. EDF Renewables develops, constructs and operates innovative solar energy solutions. Learn more at EDF-RE.com. EDF renewables is energy innovation for the next generation. 

If you like this show, please subscribe or follow us on Apple, Spotify, YouTube or wherever you get your podcasts. And as always, please be sure to share it with your friends and colleagues. The Renewable Energy SmartPod is brought to you by SmartBrief, a Future company.