Five Smart Policies for Driving Clean US Manufacturing Growth
Key Ideas
- Enacting a tax credit for clean industrial heat production can incentivize manufacturers to switch to non-polluting energy sources, accelerating the adoption of innovative technologies.
- Reforming electricity markets to value flexible energy-storage technologies can help industries transition to clean alternatives, save money, and contribute to balancing the grid.
- Expanding the U.S. Department of Energy's Industrial Demonstrations Program and the Qualifying Advanced Energy Project Credit can create jobs, reduce climate pollution, and drive adoption of clean technologies.
- Enacting tariffs on imported products from dirtier producers overseas can protect U.S. manufacturers from unfair competition and promote domestic clean manufacturing growth.
The U.S. is experiencing a resurgence in domestic manufacturing driven by investments in clean industrial technologies supported by recent legislation. To further boost this growth and ensure success, policymakers are urged to implement five key policies. First, a tax credit for clean industrial heat production can encourage the transition to non-polluting energy sources, fostering the adoption of advanced technologies. Second, reforming electricity markets to value energy-storage technologies can aid in the shift to clean alternatives, saving costs and supporting grid stability. Third, expanding the U.S. Department of Energy's Industrial Demonstrations Program is essential for creating jobs, reducing climate pollution, and advancing clean manufacturing practices. Additionally, extending the Qualifying Advanced Energy Project Credit can further support clean manufacturing and critical minerals development. Lastly, enacting tariffs on imports from polluting producers can safeguard U.S. manufacturers from unfair competition and promote sustainable domestic manufacturing growth.