Biden’s ‘Green’ Projects Failing?
According to a recent report from the Financial Times, nearly 40% of the Biden administration’s ambitious “green” infrastructure initiatives are either stalled or facing indefinite delays.
In the first year of his presidency, President Joe Biden pushed through the Inflation Reduction Act, which allocated over $400 billion in tax incentives, loans, and other financial supports to invigorate American renewable energy projects and their supply chains. However, as of August, it has been revealed that projects exceeding $100 million, amounting to a combined $84 billion, are experiencing significant delays or have been paused altogether.
Contractors involved in these projects cite several reasons for the hold-ups: diminished demand for electric vehicles, a faltering financial market, and uncertainty over policy directions in an election year. These factors have led to a slowdown in the planned expansion of these green initiatives.
Alex Jacquez, the president’s special assistant for economic development and industrial strategy, maintains that the administration has achieved “unmitigated new success” in fostering construction and manufacturing employment. He emphasized the administration’s commitment to expediting these projects, stating efforts are ongoing to address barriers related to permitting and financing where they arise.
A notable example of this pause is Lear Corporation, which had planned to invest over $100 million in a new factory in Detroit to produce electric vehicle parts but has now opted to halt the project. Similarly, Anovion, a manufacturer of battery components, has postponed its $800 million factory project due to uncertainties surrounding the IRA’s electric vehicle regulations.
John Hensley, vice president of markets and policy analysis for the American Clean Power industry group, acknowledged the reality of project attrition, suggesting that not all planned facilities will come to fruition.
The Financial Times conducted over 100 interviews with industry stakeholders and government officials, alongside reviewing corporate documents, to verify the current status of these green infrastructure projects. The findings underscore a significant challenge facing the Biden administration’s ambitious green energy agenda.
