The federal government invested an estimated $34 billion through tax credits, grants and loans for U.S. manufacturing and deployment of clean energy and transportation technologies in the last fiscal year, according to new modeling from the Rhodium Group and the Massachusetts Institute of Technology’s Center for Energy and Environmental Policy Research.
The federal government’s investments spanned manufacturing, electricity generation and electric vehicles. Only a fraction of the spending was invested in emerging technologies such as carbon capture and storage, sustainable aviation fuels and clean hydrogen, although private sector investments in these technologies are growing at a fast clip, according to the report.
This federal government spending is part of a total of $220 billion in public and private investments in clean energy and transportation projects in the same period.
The modeling provides a look at the federal government’s spending to support clean energy technologies that are bolstered by legislation like the bipartisan infrastructure law and Inflation Reduction Act. And it lands as Republicans threaten roll-backs of tax subsidies in Democrats’ climate law, even as the legislation spurs a wave of factories in their districts.
spurs a wave of factories in their districts
