China led the world in clean-energy investments in 2022, according to a report cited by E&E News’ CLIMATEWIRE (subscription)—and that should spur the U.S. government to quickly and effectively dole out promised funds to ramp up clean-energy manufacturing here at home.
What’s going on: “Nearly half of the world’s low-carbon spending took place in China, according to a recent analysis from market research firm BloombergNEF. The country spent $546 billion in 2022 on investments that included solar and wind energy, electric vehicles and batteries.”
- The amount is nearly four times the figure for U.S. investments last year.
The background: “The findings come as the U.S. and Europe work to expand domestic manufacturing capacity. The United States has begun in recent months to roll out the benefits of the [2022 reconciliation legislation], which is packed with $369 billion of incentives aimed at building up the U.S. clean energy industry.”
What can be done: The reconciliation measure seeks to up U.S. competitiveness on the world stage through subsidies, and for them to work, it’s imperative that the U.S. Treasury act swiftly to get the money distributed.
- To that end, the NAM is urging Treasury and the IRS to take several immediate actions, including providing “clarity and flexibility” on the implementation of the tax credits, coordinating with industries and businesses that have already started clean-energy initiatives, deploying more carbon capture, use and storage technologies and more.