The Inflation Control Act spurred hundreds of billions of dollars of investment in clean energy in the United States. That progress could be torn apart by the repeal of climate change laws, paving the way for Chinese control of clean energy markets.
During the campaign, President-elect Donald Trump announced the following intentions: “end” He called the Biden administration’s centerpiece climate change law, the Inflation Control Act (IRA), “the biggest fraud in history.”
The fraud has funneled hundreds of billions of dollars into Republican districts and diminished interest among Republican lawmakers in repealing climate change laws. Nevertheless, they show continued interest in at least the following: Revamp your IRA in a Republican-controlled Congress. Billions of dollars are at stake for American factories.
New research from Net Zero Industrial Policy Research Institute We found that abolishing the IRA would mean the United States would transfer billions of dollars of potential clean energy investments to China and other U.S. competitors.
“According to our scenario analysis, in the most likely scenario, the U.S. repeal of the IRA would have a negative impact on U.S. manufacturing and trade, with up to 800 “This would create a billion-dollar investment opportunity,” the study authors wrote. “The U.S. damage will come in the form of lost factories, lost jobs, lost tax revenue, and up to $50 billion in export losses.”
Coupled with bipartisan infrastructure legislation, the IRA has already US invests more than $200 billion in clean energy. This development was achieved through hard work under these circumstances. China’s huge industrial overcapacity In clean energy products.
The Net Zero Industrial Policy Institute warns that “retirement of the IRA would impede the United States’ ability to achieve clean technology leadership and cede it to other countries.” Repealing the IRA will not stop the energy transition in the United States or around the world. But that would mean the United States is unlikely to develop a strong position in the global value chains of the future energy economy, hastening its economic and geopolitical decline. ”
Despite past Republican anger over the IRA, Republican lawmakers have seen hundreds of billions of dollars invested in clean energy projects in their districts thanks to tax subsidies from the Climate Change Act. surely, three quarters The share of investment in clean energy is in Republican districts.
from CNN:
“Nearly 80% of the $243 billion worth of projects completed or under construction are in Republican districts,” according to a CNN exclusive analysis of data from the bipartisan Rhodium Group and the Massachusetts Institute of Technology. The same goes for the additional $435 billion in clean energy projects yet to be built.”
This is not just a partisan fight. Beyond Democrats, many IRA advocates have responded to President Trump’s threat to repeal climate change laws by pushing to keep them in place.
“One of our big priorities as an industry is to clarify the benefits of IRAs. Most of these (IRA) benefits are not actually vested in shareholders; they are and directly to our customers,” said Pedro Pizarro, CEO of electric utility company Edison International. Reuters Saturday. And the Zero Emission Transportation Association, which represents Rivian, LG, Tesla, Uber, Lucid, and Panasonic, called on the Trump administration last Friday to maintain tax credits for electric vehicles within the IRA.
as Scott Paul, president of the American Federation of Manufacturers, said: On the 1st anniversary of the passing of the IRA,
“China has control of some of the world’s most important rare earth minerals and seeks to disrupt America’s burgeoning solar power and electric vehicle industries. Other efforts to strengthen U.S. manufacturing are more important than ever. As the United States continues to play catch-up, the IRA is making a difference and must sustain it.”
The United States cannot afford to abandon investments in clean energy production because the IRA is abolished or weakened. Climate change law plays a critical role in our economic success, clean energy goals, and geopolitical strength.
