The bill is expected to go to the Senate floor this week
US act would expand credits for transition technologies
Bill would provide support to companies involved in the manufacture of wind turbine components, solar panels and EV batteries
The US’ proposed Inflation Reduction Act 2022 bill, announced last week, extends or expands credits for virtually every energy transition sector—including wind, solar, hydrogen, carbon capture and storage (CCS), and nuclear. The bill would mean payments being sent directly to companies involved in the manufacture of wind turbine components, solar panels and electric-vehicle (EV) batteries under a five-year, $60bn production tax credit. Tax credits for EV battery makers and materials suppliers require that materials be sourced from the US or free-trade agreement nations—which could be problematic, given China’s dominance of midstream battery materials production. $369bn – Amount set asi
Also in this section
20 March 2025
While advanced economies debate peak fossil fuel demand, billions of people still lack access to reliable and affordable energy, especially in the Global South
14 March 2025
Ignoring questions of sustainability will not make the problems they focus on go away
12 March 2025
Launch of credit trading scheme likely to slip into 2026 as government grapples with complex market design challenges
11 March 2025
Direct air capture is still in its infancy, but organisations are seeking to leverage global collaborations and AI to discover new materials, with an aim of scaling up the technology and cutting costs
