Climate policy outlook: 4 stories to know this week

The IRA spurs $115 billion in clean energy manufacturing

The U.S. in August announced $2.4 billion in new clean energy manufacturing projects, including electric sports cars in Virginia and a facility in New Mexico, as part of a broader investment wave triggered by the Inflation Reduction Act (IRA). Enacted in August 2022, the IRA aims to establish a domestic clean-tech manufacturing base, reducing reliance on foreign imports, especially from China.

Since the IRA’s implementation, more than $115 billion has been pledged for U.S. manufacturing of solar, wind, battery, and electric vehicle components, resulting in the creation of more than 42,000 jobs in 2023 alone. Experts highlight that while progress is being made, significant work remains to meet climate goals without imports.

Overall, the trend of new investments is positive, despite some challenges, with many projects set for completion in the coming years. Advocates believe these developments could lead to the U.S. emerging as a leader in the green transition.sting on the New York Stock Exchange, now delayed amid opposition from various groups. This lawsuit serves as a cautionary tale for other companies about the importance of transparency in environmental claims, highlighting the potential business risks associated with misleading marketing. Read more at Canary Media.

Biden administration gives $3 billion to battery storage

U.S. Energy Secretary Jennifer Granholm announced on Sept. 20 that new funding will support battery manufacturers in meeting the rising demand for U.S.-made electric vehicles. Since the Inflation Reduction Act was passed in August 2022, companies have pledged about $128 billion for clean energy projects, with $23.3 billion specifically for battery and storage initiatives. This funding is part of a strategy to reduce U.S. reliance on foreign imports, particularly critical minerals like lithium, much of which is sourced from China.

Granholm noted that due to these investments, the U.S. is on track to produce a quarter of the world’s lithium, significantly increasing its market share. The funding also aligns with the Biden administration’s goal of creating a domestic supply chain for batteries and critical minerals. Additionally, the U.S. is implementing trade measures, including increased tariffs on China-made EVs and related goods, to protect these investments.

This latest funding round is part of nearly $35 billion allocated for domestic critical mineral and battery supply chains, with a focus on supporting disadvantaged communities through the Justice40 Initiative, which aims to direct 40% of federal investments to marginalized areas. Read more at Utility Dive.

4 Ohio cities get $10 million from the IRA

Four major Ohio cities — Cincinnati, Cleveland, Columbus, and Dayton — are collaborating on a new initiative funded by a $10 million grant from the Inflation Reduction Act to develop voluntary building performance standards and a resource hub. This project, called the Ohio High Performance Building Hub, aims to assist commercial building owners in saving energy and reducing emissions, addressing the significant contribution of buildings to greenhouse gas emissions in the state.

The hub will provide technical guidance 421 million square feet of commercial space across these cities with financing solutions, and training. With Ohio’s history of weakened energy efficiency measures, this initiative offers a fresh approach to improving existing buildings rather than focusing solely on new construction.

Unlike mandatory codes, the proposed standards are voluntary, designed to encourage participation through incentives rather than penalties. This approach aligns with local political dynamics, where imposing strict requirements has faced resistance.

The cities plan to adopt benchmarking policies to track energy use progress and expect to reduce energy consumption by 45 percent by 2050. Equity considerations are central to the initiative, ensuring that it supports historically underserved communities without adding further burdens. Outreach and education efforts will be key to the program’s success as the cities prepare to implement these new standards. Read more at Energy News Network.

SEC quietly disbands Climate & ESG Taskforce

The Securities and Exchange Commission (SEC) quietly disbanded within the last several months its Climate and ESG Task Force, a group formed in March 2021 to combat misleading environmental, social, and governance (ESG) disclosures. Initially created under Acting SEC Chair Allison Lee and continued by Chair Gary Gensler, the task force was involved in several high-profile cases against companies like Bank of New York Mellon and Goldman Sachs.

An SEC spokesperson stated that the group’s expertise has now been integrated across the Enforcement Division, citing the effectiveness of their strategy. However, both the SEC and companies are increasingly distancing themselves from the term “ESG” amidst a backlash from conservative groups. The SEC also removed ESG from its examiners’ priorities and is unlikely to finalize pending ESG regulations before the next presidential administration begins in January.

While the task force’s last major enforcement action linked to ESG was a September 2023 settlement with Deutsche Bank for misleading investors, the agency’s commitment to addressing ESG-related fraud continues, as noted by Enforcement Division Director Gurbir Grewal. However, the task force’s work was downplayed, with related content removed from the SEC’s website in June, just before a major site revamp. Read more at Bloomberg Law.