Just under three years ago, the Inflation Reduction Act went into law and generated tens of billions of dollars’ worth of investment in domestic manufacturing of clean energy technologies. President Donald Trump has turned that wave into a ripple.
Since Trump took office in late January, companies have paused, canceled, or shuttered 26 different manufacturing projects that would have brought $27.6 billion in investment and nearly 19,000 jobs to communities across America, according to new data from The Big Green Machine, a project from Wellesley College.
Over that same time period, 29 new projects were announced for a total of just $3 billion.
Under the Biden administration, companies pledged well over $100 billion in factory investment, thanks to the Inflation Reduction Act’s incentives for manufacturers and for project developers and people to buy American-made solar panels, batteries, electric vehicles, and more. The cleantech manufacturing surge was so significant that it pushed overall manufacturing construction to heights not seen in decades.
Areas represented by Republicans in Congress stand to gain the most from this factory boom. More than 80% of the clean-energy manufacturing investment announced as of February would flow to Republican-led districts; over 70% of the jobs would go to these places.
The law did not repeal tax credits for most clean-energy manufacturers, but it will eat away at their customer base by scrapping subsidies for wind and solar developers. It also introduced strict anti-China stipulations to the manufacturing tax credit, which could be a headache for companies to comply with, depending on how the Treasury Department decides to enforce the rules.
These factors, in addition to the increasingly volatile business environment in the U.S., do not bode well for the clean-energy manufacturing boom regaining momentum in the near term. Nor do Trump’s beloved tariffs hold much promise as a way forward. Previous attempts to boost domestic solar-panel manufacturing via tariffs alone have failed, and experts say Trump’s measures will actually drive costs up for U.S.-based producers.
That’s not to say cleantech manufacturing is now a lost cause in the U.S. — some solar producers, for example, are feeling optimistic. But what’s increasingly clear is that the short-lived boom times are over, and any manufacturing success stories from this point on will be in spite of the federal government rather than because of its generous support.
Great Job Dan McCarthy & the Team @ Canary Media Source link for sharing this story.
