The Biden administration has announced a new wave of climate investments that officials said reinforces efforts to position the United States as a leader in clean energy innovation.
The announcement, made ahead of President Biden’s trip to the Amazon, further shows the administration’s commitment to addressing climate change and preserving critical ecosystems even as Biden leaves office.
During his upcoming visit, Biden will interact with Indigenous leaders and stakeholders in the Amazon rainforest before making stops in Lima, Peru, and Rio de Janeiro, Brazil, where he plans to promote global cooperation on climate action and highlight business opportunities related to clean energy.
Since taking office, the Biden-Harris administration has emphasized an expansive climate agenda through measures like the Inflation Reduction Act and Bipartisan Infrastructure Law, resulting in historic investments in clean energy, conservation, and environmental justice. The agenda has catalyzed nearly $300 billion in private investment, generated hundreds of thousands of clean energy jobs, and helped lower energy costs for American families. Administration officials described these initiatives as central to securing America’s role in the global transition toward sustainable energy production and consumption.
The new round of investments aims to reduce greenhouse gas emissions, bolster clean energy manufacturing, and lower energy costs for both families and businesses. The Department of Energy is directing nearly $18 million to 61 local and territorial governments through the Energy Efficiency and Conservation Block Grant Program, an initiative that funds energy efficiency projects nationwide. Officials said the funding allows communities to pursue projects that reduce pollution, improve energy efficiency, and develop net-zero building strategies. Over the past year, nearly 300 communities have received grants from this program, which supports the Biden administration’s broader goal of advancing environmental equity and sustainability.
In addition to the local grants, the U.S. Department of Agriculture announced over $256 million to fund more than 1,100 clean energy projects in 40 states under the Rural Energy for America Program (REAP). Through REAP, rural businesses and agricultural producers can implement solar, wind, geothermal, and hydropower technologies, enhancing energy efficiency and promoting sustainable practices. Since the start of the Biden administration, REAP has facilitated over $2.7 billion in clean energy improvements for almost 10,000 projects, including $1 billion from the Inflation Reduction Act.
The administration also plans to invest $1.2 billion in cleaner construction materials for infrastructure projects through the Low Carbon Transportation Materials Discretionary Grant Program. The Department of Transportation’s program encourages using low-emission materials like asphalt, glass, steel, and concrete in transportation projects to reduce pollution. The initiative is part of the Federal Buy Clean Initiative and aligns with the administration’s broader objectives of catalyzing sustainable industrial practices and reducing the carbon footprint of infrastructure development.
As Biden officials highlighted the administration’s achievements, a new report warns that President-elect Donald Trump’s plans to dismantle Biden-era climate policies could significantly undercut U.S. progress in clean energy. The report predicts that scrapping these policies could redirect up to $80 billion in investment abroad, resulting in $50 billion in lost exports and forfeiting economic ground to global competitors like China and South Korea. Bentley Allan, an environmental policy expert at Johns Hopkins University and co-author of the study, stressed the economic implications of rolling back clean energy incentives, stating that “the energy transition is inevitable, and the future prosperity of countries hinges on being part of the clean energy supply chain.”
Trump has criticized Biden’s climate investments as “the green new scam,” pledging to terminate clean energy subsidies and instead pursue a vision of “American energy dominance” rooted in fossil fuels. His proposals include increased oil and gas drilling, scaling back offshore wind projects, and ending subsidies for electric vehicles.
The report indicates that the changes would impact thousands of planned manufacturing projects across the United States, potentially leaving American companies dependent on foreign suppliers for critical components such as electric vehicle batteries and renewable energy technologies.
“Without these investments and tax credits, U.S. industry will be hobbled just as it is getting going, ceding the ground to others,” the report states.
Li Shuo, a climate expert with the Asia Society Policy Institute, expressed concerns about the geopolitical consequences of a U.S. retreat from clean energy. Shuo told The Guardian that China, already skeptical of U.S. climate policies, could solidify its leadership in global clean energy markets as the U.S. shifts its focus back to fossil fuels.
“China isn’t worried about selling clean energy technologies to other markets; Trump’s approach makes the U.S. seem inconsistent and unreliable,” Shuo said.
Biden administration officials argue that today’s clean energy investments are crucial for America’s economic future and its ability to compete globally.
“If we exit this competition, it will be very difficult to reenter,” Allan concluded.
