Returning to Washington D.C. after Thanksgiving, the author immediately re-engaged with the climate change discussion, encountering numerous energy and climate professionals. This reflects the intense focus on climate policy following the 2024 election.
Post-election, debate on U.S. climate policy is reaching a critical point, with businesses, activists, and government officials navigating an uncertain landscape.
The Inflation Reduction Act (IRA) is central to these discussions. While unlikely to be entirely repealed, potential modifications are being considered.
Specific proposals for amending the IRA are under scrutiny. Analysis of an August statement by 18 Republican congressmen is ongoing. Tax credits for electric vehicles appear vulnerable, while incentives for carbon capture and storage are considered more secure.
The interaction between President-elect Trump and a narrowly Republican Congress remains unpredictable, prompting intense lobbying efforts from various stakeholders to influence policy decisions.
The fate of the Department of Energy’s Loan Programs Office (LPO) is another key issue. Republicans’ concerns about the LPO’s use of taxpayer funds are being weighed against the program’s track record of generating returns and supporting the private sector.
The LPO director affirmed the office’s continued operation. He stated at a recent gathering that loan programs are continuing as normal.
Beyond direct climate policies, other areas significantly impact decarbonization efforts. Trade policy, particularly potential tariffs and trade barriers, pose a substantial risk to global economic stability, potentially disrupting clean technology supply chains.
Despite uncertainty, a degree of optimism persists. Companies are increasingly engaging in climate policy lobbying, a shift from previous years. The effectiveness of this corporate advocacy remains to be seen.