The Joe Biden administration’s climate ambitions face significant hurdles as numerous clean energy projects in the U.S. are being either postponed or scrapped.
This has occurred despite the Inflation Reduction Act (IRA) signed by Biden in August 2022, which planned to inject $370bn for the speedy decarbonization of the world’s largest economy, reported the Financial Times.
Companies such as Ørsted, the world’s premier offshore wind energy developer, and carmaker General Motors Co. (NYSE:GM) have recently suspended or abandoned their respective projects. Factors like high-interest rates, supply chain issues, and regulatory complexities have contributed to this setback.
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Notably, the IRA aims to cut U.S. greenhouse gas emissions by 32% by 2030. However, the recent developments have made analysts rethink this potential speed of emission reduction.
Although some high-profile projects have slowed down, others like Dominion Energy Inc.’s (NYSE:D) 2.6GW offshore wind farm in Virginia and Toyota Motor Corp.’s (NYSE:TM) $8bn investment in a North Carolina battery plant are moving forward.
Despite these challenges, the White House emphasized that the IRA has stimulated historic levels of private-sector investment in green energy. This includes over $11 billion in solar manufacturing and $7.7 billion in offshore wind.
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