Biden’s climate plan is back, and it’s all about building things

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After over a year of negotiations, we finally saw a proposal that could clear Congress. The inflation reduction act would raise $740 billion in revenue through a combination of tax increases and price negotiation and divert $370 billion of that money to fighting climate change. The bill would be the largest climate spending package in US history, if it makes it through Congress, and it couldn't come at a better time.

The amount of the package is striking, but it is even more intriguing where the money is going. It will take a lot of physical equipment to lower US emissions. New incentives at every phase of the process are provided by the proposal.

The bill gives $30 billion in tax credits to utilities that develop clean energy sources. Another $20 billion will be lent out to support domestic electric car factories, with $10 billion in investment tax credits for factories that make wind turbine or solar panels. The bill establishes 10 years of consumer tax credits for homeowners who purchase heat pumps, rooftop solar panels, or other equipment that will make their homes more energy efficient.

This bill is putting a lot of money into making sure these technologies are built and installed. The majority of the climate plan rests on the idea of increased production to make the economy green while helping it grow.

It's a real political ploy for Democrats to balance the urgent need for climate action against the political pressure from rising energy prices and the economy. Democrats want to put forward a kind of climate action that doesn't hurt the economy or raise gas prices, and that doesn't cost them votes. It is difficult to say if the approach will succeed in bringing down US emissions and meeting our aggressive climate goals.

The package is described by the White House in a way that downplays its climate impact in favor of an emphasis on lower energy costs. The White House said in a statement that tax credits and investments for energy projects will be provided. Thousands of new jobs will be created and energy costs will be lowered.

There are problems with this approach. Significant concessions need to be made for oil and gas drilling on federal land, which will translate into more carbon emissions than almost anything else in the bill. There are measures in the bill to open new leases for offshore drilling and other projects on public land.

Some environmental groups think the bill may make things worse. The agreement won't solve the crisis, and may make it worse, said Wenonah Hauter, executive director of Food and Water Action. This deal will prop up fossil fuels and promote false climate solutions beloved by industry, according to the few details released tonight.

Factors that are difficult to predict are the tradeoffs. Even with the new lease promises in place, offshore drilling might not be profitable if the proposal succeeds. If the new incentives don't have an effect, the impact could be to open up more public land to fossil fuel exploitation, which in turn would cause more carbon to be released into the atmosphere.

The National Resources Defense Coalition said the proposal was a giant step forward. Climate policy that raises gas prices and costs jobs isn't likely to stay in place for long with record temperatures. As the smaller bill limps towards the finish line, it is hard not to wonder if we are sacrificing a future for a present.