November 25, 2023 — Canceled offshore wind projects, imperiled solar factories, fading demand for electric vehicles.
A year after passage of the largest climate change legislation in U.S. history, meant to touch off a boom in American clean energy development, economic realities are fraying President Joe Biden’s agenda.
Soaring financing and materials costs, unreliable supply chains, delayed rulemaking in Washington and sluggish permitting have wrought havoc ranging from offshore wind developer Orsted’s (ORSTED.CO) project cancellations in the U.S. Northeast, to Tesla, Ford and GM’s scaled back EV manufacturing plans.
The darkening outlook for clean energy industries is tough news for Biden, whose pledge to deliver a net-zero economy by 2050 faces headwinds that the landmark Inflation Reduction Act’s billions in tax credits alone can’t resolve.
After walking into last year’s United Nations climate summit in Egypt touting the IRA as evidence of unprecedented progress in the fight against climate change, Biden is expected to skip this year’s event in Dubai amid dire warnings that the world is moving too slowly to avert the worst of global warming.