Strengthening Supply Chains for US Decarbonization
The 2022 Inflation Reduction Act provides new sources of capital and incentives for accelerating net-zero efforts. The law concurrently seeks to shift supply chains vital for US decarbonization to domestic sources and, more selectively, to links with free-trade partners. However, challenges abound. This policy paper responds by exploring opportunities inherent to rapidly creating just, low-carbon, and sustainable supply chains for key sectors of the US economy. These recommendations center upon the following key efforts: * Expediting permitting for critical decarbonization materials * Applying exceptions and special waivers on domestic content * Incentivizing recycling and materials innovation * Applying domestic content guidance progressively * Developing human capital * Developing decarbonization clusters * Expanding domestic exploration incentives * Prioritizing friendshoring, risk reduction, and low-carbon trade in foreign policy This report is part of Keys to the US Energy Transition: An Energy Pathways USA Series.
