What is the impact of Trump's proposed legislation, dubbed 'big' and 'beautiful', on the environment and climate change?
The US Congress's recently passed "One Big Beautiful Bill Act" (OBBBA) has come under fire from clean energy advocates and environmental groups, who argue that the legislation significantly shrinks the scope and financial support for renewable energy and clean transportation.
The bill, which was passed by Congressional Republicans this week, repeals many of President Joe Biden's green energy incentives, including some from his signature climate bill, the Inflation Reduction Act. Critics claim that the bill's provisions are not about the budget but rather about boosting fossil fuels.
One of the key criticisms of the OBBBA is its impact on clean energy deployment. The bill is expected to cut new clean power capacity additions by approximately 53-59% from 2025 through 2035, drastically slowing the clean energy transition and hampering US greenhouse gas emissions reductions.
The bill also prioritizes emerging or less established technologies like small modular nuclear reactors, enhanced geothermal, and carbon capture and storage, while curtailing incentives for solar, wind, and electric vehicles (EVs). This early termination of EV tax credits is projected to lead to a reduction of 27-41 million fewer EVs on US roads by 2035, around 20-34% below baseline scenarios.
Moreover, the bill does not include an excise tax on renewable energy, a move that clean energy advocates are still critical of. The bill's provisions are also seen as making it harder to build new clean energy projects, with new supply chain requirements linked to foreign entities potentially limiting the ability of local governments to access direct pay incentives for these energy projects.
Environmental advocates have labelled the OBBBA as devastating for the clean energy transition. Gretchen Goldman, president of the Union of Concerned Scientists, states that the bill attacks clean energy and clean transportation. Steven Nadel, executive director of the American Council for an Energy-Efficient Economy (ACEEE), warns that the bill will exacerbate the growing strain on the electric grid.
The oil and gas industry, on the other hand, is praising the legislation, which could expedite new potential lease sales tied to fossil fuel projects. The bill also attempts to roll back funding for a programme intended to help oil and natural gas producers cut methane emissions.
The OBBBA is estimated to add an additional US$3.3 trillion to the national debt. The bill's critics argue that it jeopardizes the rapid deployment of clean technologies and the US’s ability to meet ambitious climate goals, while favoring a narrower range of energy technologies with longer timelines for credit phase-out.
- The One Big Beautiful Bill Act (OBBBA) has drawn criticism from clean energy advocates and environmental groups, as they believe it shrinks the scope and financial support for renewable energy and clean transportation.
- The bill, passed by Congressional Republicans, repeals many of President Joe Biden's green energy incentives, including some from his signature climate bill, the Inflation Reduction Act.
- One of the key criticisms of the OBBBA is its impact on clean energy deployment, with expectations of a 53-59% reduction in new clean power capacity additions from 2025 through 2035.
- The bill prioritizes emerging technologies like small modular nuclear reactors and carbon capture and storage, while curtailing incentives for solar, wind, and electric vehicles (EVs).
- The early termination of EV tax credits is projected to lead to a reduction of 27-41 million fewer EVs on US roads by 2035, around 20-34% below baseline scenarios.
- Environmental advocates label the OBBBA as devastating for the clean energy transition, claiming it attacks clean energy and clean transportation, and exacerbates the growing strain on the electric grid.
