President Joe Biden has achieved remarkable success for U.S. climate policy halfway through his term, and his first State of the Union after the midterms should reflect the accomplishments that Democrats have made in passing the Inflation Reduction Act and Democrats and Republicans both for their roles in the IIJA, CHIPS and Science Act, and the ratification of the Kigali Amendment. But what PPI’s Energy and Climate team wants to see most is what comes next: What are President Biden’s climate plans for the next two years of a divided Congress, for 2024, and beyond? And how will Biden position U.S. energy policy amidst continued turbulence in global markets as Russia’s war in Ukraine drags on?
As hundreds of billions in spending and loans flow out of these new federal programs to firms, households, and state and local governments, President Biden and both parties in Congress should look to finally strike a deal reforming federal and other barriers to the deployment of crucial new clean energy technologies held back by the permitting process, environmental review delays, and inter-jurisdictional conflicts. Biden should also call on Congress to fully fund the energy-related provisions of the CHIPS and Science Act authorizing roughly $54 billion for R&D over the next 5 years through programs at ARPA-E, the NSF, and elsewhere. The 2023 Omnibus bill only included partial funding for these investments in basic science and early-stage energy technologies and only for the coming year; fully funding them for the next 5 years will help the U.S. maintain its position at the cutting edge of the energy transition.
Lastly, Biden’s biggest climate challenge is not domestic but international. As my PPI’s Paul Bledsoe has noted, emissions from China alone are greater than all developed countries combined and still growing. The administration must work with our allies to find more effective means of compelling developing nations to reduce their emissions. Simultaneously, working more closely with allies like the EU, U.K., Japan, and South Korea that lack trade agreements with the U.S. will allow closer cooperation on provisions in the IRA that grant bonuses to countries with existing agreements, like Canada and Mexico. And with Russia’s war against Ukraine ongoing, American LNG exports continue to play a vital role in European and global energy markets by maintaining energy security, offering especially low-methane supplies, and displacing coal-fired generation.
Let’s hope 2023 is a year of continued success for America’s clean energy leadership.
This post is part of a series from PPI’s policy experts ahead of President Biden’s State of the Union address. Read more here.
