During this time of uncertainty and challenge, one thing remains clear: climate disruption is here and communities in Vermont and globally are increasingly grappling with its effects.
In Vermont, we’ve seen an increase in extreme precipitation, with multiple devastating, costly flooding events in the last couple of years. According to data from Rebuild by Design, Vermont had the fifth highest disaster costs per capita of any state in the U.S. between 2011 and 2023.
Vermont has also experienced increasingly warm winters, more frequent drought, and more extreme heat in the summers. Globally, 2024 is expected to surpass 2023 as the hottest year on record, and scientists have projected that 2024 will likely be the first year in which annual average temperatures exceed 1.5°C above pre-industrial levels.
As we know all too well in Vermont, the economic impact of climate disasters is huge. A recent study estimated that, globally, climate-related extreme weather events have cost $2 trillion in economic losses and damages in the last decade. Continuing to delay action on climate, whether at the state, national, or international levels, will only intensify these costly impacts in the years to come.
The vast majority of Vermonters are concerned about the effects of climate change, and particularly its effects on the future of younger generations. And amid growing concern about high costs and economic insecurity, Vermonters are faced with the daily realities of an existing energy system that has long been and today remains unaffordable and inequitable.
The average Vermont household spends over $7,000 per year on energy costs, including heating, electricity, and transportation fuels. Relative to household income, that’s equivalent to an average energy burden (the share of household income spent on energy) of 11%. Based on national data from NREL, Vermont is estimated to have the third highest average energy burden in the country.
High energy burdens increase the risk of energy insecurity, or the inability to afford basic energy needs. Often, this means having to forgo other essentials, like food or medicine, in order to pay for energy bills, or keeping the home at unsafe or unhealthy temperatures.
An important factor driving high energy costs for Vermonters is the high level of dependence on delivered fossil heating fuels, such as fuel oil, propane, and kerosene, which are some of the highest-cost and most price-volatile heating sources. Nearly 60% of Vermont households rely on fuel oil, propane, or kerosene to heat their homes.
100% of the fossil fuels used in Vermont are imported and subject to the volatility and unpredictability of a global commodity market. In 2022, for instance, the price of gasoline and diesel increased by nearly $2 per gallon. Similarly, fuel oil, propane, and kerosene prices also saw significant increases during that same time period.
We know that many of the solutions that reduce climate pollution can also lower energy costs, especially over the long run. Many Vermont households have the potential to save hundreds of dollars per year on heating and transportation costs when switching to efficient electric alternatives, such as cold-climate heat pumps and electric vehicles.
The transition is already well underway and there is considerable demand for these solutions. As of the end of 2023, more than 60,000 heat pumps and nearly 20,000 heat pump water heaters had been installed in Vermont homes, almost 40,000 homes had been weatherized, and more than 12,000 Vermonters are driving electric vehicles. Many Vermonters have been able to do these things because of federal Inflation Reduction Act (IRA) funding and state and utility incentives. While the future of federal and state funding is uncertain, we know that these programs have been effective and, more importantly, are key to ensuring a just and equitable transition.
As we head into 2025, state and local level action is more important than ever, and EAN remains committed to ensuring that climate and energy progress in Vermont is collaborative and grounded in evidence-based, data-driven research and analysis. We know that the status quo is unsustainable and unaffordable, and we will continue to work to ensure that Vermont meets its climate and energy commitments in ways that promote equity and affordability.