“Challenges Threaten Biden’s Climate Goals as U.S. Clean Energy Boom Stumbles”
By Nichola Groom and Jarrett Renshaw
(Reuters) – Climate change legislation in the U.S. was meant to trigger a surge in clean energy development, but economic realities are straining President Joe Biden’s agenda a year later.
Soaring financing and materials costs, unreliable supply chains, delayed rulemaking in Washington, and sluggish permitting have caused havoc in the industry, from the cancellation of offshore wind projects to scaled-back electric vehicle manufacturing plans by major automakers like Tesla and Ford.
The darkening outlook for clean energy is challenging for Biden, whose pledge to deliver a net-zero economy by 2050 faces overwhelming obstacles that billions in tax credits alone can’t resolve.
The setbacks make it even harder for the U.S. to reach its ambitious decarbonization targets, according to experts interviewed by Reuters. No major nation is on track to meet emissions reduction goals outlined in the United Nations’ Paris accord, aiming to limit global warming to 1.5 degrees Celsius.
While there are examples of progress, such as an expanding EV market and progress on the nation’s largest offshore wind farm, the United States still faces macroeconomic setbacks and bottlenecks at the local level in renewable energy deployment, according to a White House official.
More than 56 gigawatts of clean power projects, enough to power nearly 10 million homes, have been delayed since late 2021, with solar energy facilities particularly impacted due to import restrictions.
Tight supplies and strong demand for renewables have driven up contract prices, potentially leading to higher costs for consumers. The U.S. offshore wind industry is also facing turmoil, with doubts growing about the Biden administration’s target of deploying 30 gigawatts of offshore wind by 2030.
Despite these challenges, the U.S. can be proud of its tackl
ing of climate change when compared with previous administration’s policies, but the clean energy industry is facing the typical ups and downs of development and deployment.
(Reporting by Nichola Groom; Editing by Richard Valdmanis and Alistair Bell)
