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.