Several landmark climate initiatives have been passed since 2021, injecting trillions into the US economy. Although it’s been less than a month since the Inflation Reduction Act was signed into law, we’re already seeing some powerful effects rippling throughout the economy.

President Biden ran for office on the idea that climate change is “one of the greatest threats facing our country.”

After winning the presidency, Biden moved quickly, re-enacting many of the Trump-era environmental rollbacks and laying out his plans for America’s sustainable future. In fact, on his first day in office, Biden signed executive order 13990 (EO 13990), titled “Protecting Public Health and the Environment and Restoring Science to Address the Climate Crisis.”

Since then, a major theme of the administration’s plan has been to re-establish the United States as a sustainability leader while investing in new technology to create jobs and bring back manufacturing lost abroad. country.

In particular, Biden focused on the mass adoption of EVs and the development of renewable energy projects. The administration is aggressively targeting a 50% EV share of total vehicle sales in the United States by 2030.

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Solar PV Plant Source: First Solar

Although many automakers are facing production delays right now on electric vehicles, recent initiatives should help ease bottlenecks in the supply chain. For example, one of the most important challenges preventing automakers from scaling EV production is the shortage of semiconductors, which the administration plans to ease.

Recent climate initiatives have been passed to boost the US economy

The CHIPS and Science Act, passed in August, provides $52.7 billion for semiconductor research, development, and manufacturing to build a domestic supply chain while spurring manufacturing growth. Other recently passed climate initiatives intended to stimulate the economy:

  • Infrastructure Investment and Jobs Act (IIJA) – Signed into law in November 2021, the IIJA provides $89.9 billion in funding to improve public transit with zero-emission vehicles. The bill also invests $7.5 billion in building a national EV network.
  • Inflation Reduction Act (IRA) – Biden signed the IRA bill into law on August 16, investing $369 billion to promote a clean, sustainable energy economy. The IRA bill includes tax credits for EV buyers and solar installations, rebates for energy-efficient appliances, and additional clean energy incentives for businesses.

These bills were signed into law less than a year ago (or less than a month) and already show promise. Here are some recent examples that show these climate initiatives are doing what they were designed to do: create jobs and bring manufacturing back to the United States while accelerating clean energy efforts.

Electric vehicle and battery manufacturing

Automakers expect demand for electric vehicles to continue to rise. In particular, the Inflation Reduction Act provides tax credits for EV buyers in an effort to make sustainable transportation affordable for everyone.

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Mercedes-Benz battery plant in Georgia Source: Mercedes

However, for an EV to qualify, its parts must come from the United States or its free trade partners with final assembly in North America. This requirement excludes many foreign automakers from participating. As a result, many automakers have announced plans to accelerate or establish new electric vehicle and battery assembly investments in the United States.

  • Hyundai is considering speeding up its timeline for producing EVs in the United States. Although Hyundai is already planning for a dedicated EV plant in Georgia, they aim to start construction by the end of the year.
  • Volkswagen has signed a memorandum of understanding with Canada to source EV battery components such as nickel and lithium. VW said the deal would shorten its supply chain and boost US sales.
  • Mercedes-Benz already has a dedicated battery plant in the United States at its facility in Georgia. However, the luxury automaker said it will source 10,000 tons of lithium-grade batteries from Rock Tech to help it achieve its goal of an all-electric portfolio after 2025.
  • Honda has partnered with LG Energy to invest $4.4 billion in a new battery plant in the US with a capacity of 40 GWh per year.
  • Panasonic has announced a second battery cell factory location in Kansas, where it plans to make 4680 new cells for Tesla and is considering a third large battery cell factory.
  • Tesla plans for a lithium refining factory in Texas, where the EV leader has already submitted an application.

And this is only in the auto industry. Let’s look at the growth of renewable energy since the implementation of climate initiatives.

Renewable energy projects

Another main goal of the recently passed climate bills is the advancement of renewable energy projects. With the United States aiming for a carbon-free electricity sector by 2035, renewable energy will play an important role. Meanwhile, as fossil fuel and electricity costs rise, renewable energy is more critical than ever for energy security and the conservation of natural resources.

  • First Solar, the largest solar panel maker in the United States, announced its intentions to invest $1.2 billion to accelerate solar panel production. The solar panel manufacturer also plans to upgrade three of its facilities. First Solar’s CEO says recent climate initiatives have prompted the company to redouble its efforts.
  • SPI Energy, a global clean energy provider based in California, announced today that it has signed a new lease for additional facilities to expand its solar module manufacturing capability to 2.4GW by 2023 to meet the growing demand for American-made solar modules.

Renewable energy is set to take off in the next few years. The United States added 13.2GW of utility-scale solar energy capacity by 2021, a new annual record. Think about what this year will accomplish.

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The developments listed above have been made possible by recently passed climate initiatives. With additional funding available for clean energy projects and incentives to purchase sustainable options, the bills are working as planned — creating jobs and bringing manufacturing back to the United States while building a strong on energy sector for the future.

So far, the new policies have added about 642,000 manufacturing jobs to the US economy. Global automakers are racing to produce EVs in the United States, and renewable energy manufacturers are expanding production capabilities. The new investments also make sustainable, clean energy options available to a wider market of buyers.

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