Building A Clean Energy Supply Chain
Biden’s Plan Supports U.S. Manufacturing And Weakens China’s Grip On Advanced Tech
President Biden’s plan for a clean energy economy takes a smart approach by building up the industries we need right now. Not only will the Build Back Better Act create millions of good paying jobs, reduce energy costs for families and help save the planet, the plan will make us less dependent on China for advanced technology and will make the U.S. manufacturing more competitive in the world.
China Currently Dominates Clean Energy Technology Because They Are Tripling Our Rate Of Investment. China began to outpace the U.S. in clean energy investments back in 2009, and by 2017 they were investing three times as much as the U.S. to grow their clean energy economy.
- As a result, China currently has an 80% market share in solar cells and a 60% market share in wind turbine production.
- Now, China has pledged to become carbon neutral by the year 2060 and has endorsed a plan to spend $1.4 trillion on sustainable infrastructure and clean energy technology over the next five years.
Blocking President Biden’s Plan Will Only Help China Grow Their Lead In New Technology. Clean energy is an industry that will continue to grow with or without the United States’ involvement. Even if the United States chooses to sit on the sidelines, growing demand for clean energy and electric vehicle technology in China, Europe, and India will mean big opportunities for Chinese manufacturers absent a serious push to develop competition from the U.S.
- According to an International Energy Agency report: “Renewables are set to account for almost 95% of the increase in global power capacity through 2026, with solar PV alone providing more than half.”
- China is also the world’s largest auto buyer of electric vehicles and already has the highest total number of electric cars on the road. Researchers at CSIS warn that if China takes too much of a lead in the electric vehicle market, it will threaten U.S. automakers’ ability to keep up and stay competitive.
President Biden’s Plan Will Jumpstart Our Domestic Clean Energy Supply Chains. The Build Back Better plan takes a comprehensive approach to growing our clean energy economy by investing not only in deploying clean energy sources, but also building the manufacturing base and supply chains to develop and build them right here at home.
- The Advanced Manufacturing Tax Credit (also known as 48C) could create nearly 140,000 jobs and add $27 billion to domestic GDP by providing incentives for companies that build or retrofit factories to manufacture clean energy technologies right here in the United States. This can include solar polysilicon, wafers, cells, and modules, as well as wind blades, nacelles, towers, and offshore foundations.
- Expanded tax credits for electric vehicles would provide additional support for new electric vehicles with at least 50% domestic content and protections for workers’ rights. On top of direct-to-consumer tax credits, the President’s plan would include $3 billion funding for Advanced Technology Vehicle Manufacturing loans to help manufacturers develop and produce the vehicles of the future.
- Expanded tax credits for clean electricity production will also include domestic content requirements that will reward clean electricity projects built with components & steel manufactured in the United States.
Investments At Home Will Create Jobs At Home And Benefit Local Economies. Building a clean energy economy means growing jobs and supporting local economies across the U.S.
- The Build Back Better Act will add 2.4 million jobs to the economy.
- Many clean energy jobs are in installation, maintenance and construction, which means they have to be local and can’t be outsourced..
- These jobs will be needed everywhere, including cities, suburbs, and rural communities and most will not require a college degree.