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.