More climate tech projects are dying on the vine
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Businesses closed, canceled or downsized over $14 billion worth of U.S. low-carbon manufacturing and energy generation projects so far this year, per a new summary of tracking data from the nonprofit group E2.
Why it matters: The pullback comes amid "rising fears over the future of federal clean energy tax credits and policy," as budget legislation advances, the group said.
- The retreat has already cost 10,000 planned jobs, per E2.
- More planned projects will be scuttled if the House reconciliation bill, which massively pares back the IRA, becomes law, it warned.
State of play: Projects disappearing or delayed include battery and solar equipment manufacturing, hydrogen production and wind generation, per E2, which is affiliated with the Natural Resources Defense Council.
- Manufacturing accounts for a large majority of the tally.
Yes, but: Renewables generation and storage additions are still progressing under current law.
- The American Clean Power Association reported this morning that utility-scale wind, solar and battery storage capacity grew by 7.4 gigawatts in Q1, the second-largest January-March stretch ever.
- "Eight of the top ten states for Q1 clean power additions voted Republican in the 2024 presidential election," the group said.
What we're watching: All eyes are on whether the Senate will soften the House-approved bill that dismantles what GOP leaders call a wasteful "green new scam."
- "Now is not the time to raise taxes on clean energy and compound the business uncertainty that is clearly taking a greater and greater toll on U.S. manufacturing and jobs," E2 communications director Michael Timberlake said.
