The world needs to transition to clean energy. But this massive transformation runs up against political obstacles. Local governments, national political parties, and corporations are obstructing the clean energy transition. And yet there is bipartisan support for communities on the front lines of the energy transition to receive compensation and investment. This chapter introduces the idea that these policies face credibility challenges and questions about local economic benefits. Next, we connect this discussion around the climate impasse with earlier economic transitions due to globalization, automation, national parks, and environmental protections. Finally, we argue that top-down approaches miss these credibility concerns. Instead, a bottom-up process of listening to impacted communities is crucial to unlock the climate impasse.

What are the underlying challenges that create the climate impasse? This chapter explains why compensation and investments that are supposed to facilitate a clean energy transition face credibility challenges. These challenges arise from various sources, such as today’s government cannot perfectly control what tomorrow’s government does, and uncertainty about whether the government represents the interests of people and communities impacted by policy reforms. Finally, we argue that new industries might be seen as providing few local economic benefits. In light of these challenges, we propose solutions to create credibility and build support for the energy transition.

Do people see clean energy investments as delivering local economic benefits? That is, investments producing well-paying jobs that last and use the local workforce? Compared to careers in healthcare, for example, people are more skeptical of the local economic benefits of the clean energy industry. While our surveys show that the national public holds these industries in better regard than coal, for example, this gap declines in areas with more fossil fuel-intensive industries. Our interviews with energy companies confirm these findings. We also discuss the tax revenue challenges communities face when they have long depended on a single revenue source and clean energy does not always support local finances.