Investing in U.S. Manufacturing and Clean Energy Supply Chains Key to Climate Action and American Competitiveness

Representative Paul Tonko co-led a hearing on the need for investments in U.S. manufacturing and clean energy supply chains to ensure American competitiveness abroad and take critical steps to address the climate crisis. The Biden Administration and Democratic members of the Committee have proposed ambitious climate targets, including at least 50% economy-wide greenhouse gas emissions reductions from 2005 levels by 2030 and a carbon-free electricity system by 2035. To achieve these goals, serious commitment and immediate action are required, including building an immense amount of new infrastructure and manufacturing capacity.

Key Takeaways:

• The United States needs to develop domestic supply chains for clean energy technologies, including wind turbines, solar panels, batteries, advanced vehicles, charging equipment, and electric appliances, to ensure American competitiveness abroad and take critical steps to address the climate crisis.
• Ambitious climate action requires fundamental changes to the economy and energy system, including developing domestic sources of critical minerals such as lithium, cobalt, and nickel.
• Members of Congress have two options: use the excuse to oppose the domestic energy transition and guarantee that foreign competitors dominate the global economy, or support Federal policies that enable American workers to benefit from the transition.
• The Build Back Better Act and the Infrastructure Investment and Jobs Act include billions of dollars to support the development of domestic clean energy supply chains, particularly for battery manufacturing.
• Enhancing the recycling and reuse of critical minerals and clean energy systems is crucial, with Europe recovering over 60% of the lithium in the economy through recycling, compared to only 5% in the United States.

Statistics:

• At least 50% economy-wide greenhouse gas emissions reductions from 2005 levels by 2030.
• At least half of new vehicle sales to be electric by 2030.
• A carbon-free electricity system by 2035.
• $ billions invested in clean energy in the years ahead.
• Over 60% of lithium in the European economy recovered through recycling.
• 5% of lithium-ion batteries recycled in the United States.
• 97% of traditional lead-acid batteries recycled in the United States.

Sources:

• United States House of Representatives -- Representative Paul Tonko (Capital Region New York)
• Biden Administration proposal for climate targets
• Energy Act of 2020
• Infrastructure Investment and Jobs Act
• Build Back Better Act
• CLEAN Future Act