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The clean energy transition has been a hot topic on the campaign trail, where presidential candidates have presented drastically different visions on basically everything climate-related.
For consensus on the US’s current approach to tackling the climate crisis, look to business leaders in the clean energy industry.
E2, a nonpartisan business group focused on environmental and economic issues, recently commissioned a survey from BW Research of more than 900 business stakeholders to get their thoughts on the Biden administration’s signature climate legislation, the Inflation Reduction Act (IRA). The law, which went into effect in mid-2022, includes hundreds of billions of dollars in direct grants and tax credits to spur the clean energy transition.
The results suggest that the IRA has been a boon for business, and that its rollback could lead to layoffs, operations moving to other countries, and business closures.
“The impacts of this landmark policy are now crystal clear––as are the consequences if it’s repealed or rolled back,” E2 Executive Director Bob Keefe said in a statement. “We now also know that if it goes away, businesses will lose money, workers will lose jobs, and our economy will lose steam.”
Changes possible: Former President Trump has said that if reelected, he would rescind unspent IRA funds.
Experts have said that a repeal is unlikely, but that other changes are possible. Utility Dive recently reported, based on a report by Columbia University legal experts, that it would be difficult for the government to claw back funds that have already been disbursed, but that it’s feasible for the administration to reallocate or not award IRA funding.
An MIT Technology Review analysis suggested that tax credits for EVs and clean energy projects would be “especially vulnerable” to rollback attempts.
IRA impact: A previous E2 analysis found that 60% of major clean energy projects announced under the IRA are in GOP congressional districts, a finding backed up by other reports.
In this latest survey, more than half of respondents said they believed their companies would “lose business or revenue” if the IRA were repealed. More than one-fifth said they’d likely exit the clean energy space altogether, and 11% said they’d likely close their business.
Around 85% characterized the IRA as “very important” or “somewhat important” to business growth.
Under the IRA, businesses have announced $130 billion in investments in 338 major clean energy and vehicle projects, such as factories for EVs, batteries, and solar panels, per E2.