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Siemens Urges Companies to Sell Americans on Benefits of Biden’s Industrial Policy
The head of Siemens in the US, Barbara Humpton, is calling on companies to promote the benefits of the Biden administration’s industrial policy. She warns that a change of government could jeopardize the tax breaks and subsidies necessary for modernizing the American economy.
Humpton believes that measures like the Inflation Reduction Act, which includes a $369 billion package for clean energy, should be a non-partisan issue. She emphasizes that it is in the best interest of all Americans that these measures survive the upcoming US elections.
“We need to share stories that convey the importance of these policies to American workers, families, and national security,” Humpton said in an interview with the Financial Times.
Siemens, whose largest customer is the US government, has already relocated some component manufacturing for the solar industry from Germany to the US as a result of the Inflation Reduction Act.
Republican presidential candidates have been calling for the repeal of the Inflation Reduction Act, which they view as a communist manifesto that benefits China. However, energy executives are concerned that the loss of tax credits could undermine the profitability of their projects and hinder the country’s emissions reductions.
The Inflation Reduction Act provides a 10-year framework to incentivize green initiatives and develop a domestic manufacturing base. Clean energy investments have increased by 37% this year, surpassing $200 billion.
Political Attacks Worry Energy Executives
The attacks on the Inflation Reduction Act have caused alarm among energy executives who fear the loss of tax credits will negatively impact their projects and the country’s efforts to reduce emissions.
“The back and forth between presidential parties is very difficult for long-term investments,” said Dustin Meyer, senior vice-president at the American Petroleum Institute. “We need stability and predictability.”
The Inflation Reduction Act has helped stimulate private sector investment, with a majority of clean energy manufacturing projects being located in Republican-controlled districts. This includes South Carolina, the top state for clean energy manufacturing projects and home to two Republican presidential candidates who have vowed to repeal the act.
Despite disapproval from some Republicans, President Biden has highlighted instances of clean energy investments in Republican districts, suggesting that the benefits of the Inflation Reduction Act are reaching both sides of the aisle.
Importance of the IRA Tax Credits and Clean Energy Investment
Business leaders, like Barbara Humpton, are hopeful that the concentration of clean energy projects in Republican states will ensure the survival of the Inflation Reduction Act’s tax credits. Humpton believes that stability and predictability are crucial for business growth, regardless of who is in office.
She also highlights the positive impact of Biden’s industrial policies, such as the Inflation Reduction Act, the Chips Act, and the Infrastructure Investment and Jobs Act. These policies have led to increased employment, manufacturing, and the attraction of new industries to the US.
Pedro Pizarro, board chair of the Edison Electric Institute, emphasizes that the clean energy transition is inevitable and urges politicians to prioritize economic sanity over political rhetoric.
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