US clean energy growth hindered by policy, tax uncertainty
TL/DR –
At the DC Climate Week conference, clean energy experts expressed concerns about the uncertainty surrounding clean energy development in the US, especially in relation to clean energy tax credits and the impact of President Trump’s tariffs. They argue that this uncertainty is preventing US companies from surpassing global competitors, and it’s causing confusion for businesses, making them unsure about whether to invest in certain projects. They also voiced concern over the fact that clean energy investments included in the Bipartisan Infrastructure Law and Inflation Reduction Act, two key climate bills from the Biden administration, begin to expire this year, which could lead to what one expert referred to as an “innovation funding cliff”.
Future of US Clean Energy Development at Risk
At the recent DC Climate Week, clean energy policy experts voiced their concerns about the future of clean energy development in the US. The current uncertainty surrounding clean energy tax credits and Trump’s tariffs are impeding US companies from advancing past global competitors.
Discussions at the climate week revealed that the prevailing policy and tax ambiguity are adversely impacting businesses and energy development. According to Rep. Don Beyer, D-Va., the lack of market certainty is causing confusion, preventing companies from making informed investment decisions.
Representative Beyer expressed the importance of preserving certainty built into the Chips and Science Act and Biden’s landmark climate bills: the Bipartisan Infrastructure Law and Inflation Reduction Act. However, Trump’s executive orders first day in office signaled a step back from these federal climate policies. These orders included the suspension of all funding related to the IRA and the Bipartisan Infrastructure Law.
Joey Paolino, a senior principal for Advanced Energy United, agreed with Beyer, stating that policy certainty is crucial for industry progress. Investments in clean energy technologies are hesitant due to an uncertain tax landscape.
Furthermore, clean energy investments from the Bipartisan Infrastructure Law and IRA are due to expire later this year. Lindsey Baxter Griffith, CEO of Clean Tomorrow, warns that the nation is heading towards an “innovation funding cliff.”
Dan Delurey, former White House director for clean energy, pointed out that the US has not done enough to capitalize on climate policies that could have been turned into corporate opportunities. He cited the example of photovoltaic cells and panels, invented in the US, but now primarily being manufactured in China.
—
Read More US Economic News