Despite Europe’s anger, Manchin is doubling subsidies for electric cars

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Good morning and welcome to The Climate 202! Today we’re laughing at this story about the movies people hated the most in 2022. We think we’ll stick with them Oscar nominees. But first:

Manchin is doubling EV tax credits in climate law despite trade tensions with Europe

Senator Joe Manchin III (DW.Va.) today introduced a bill to stop tax credits for electric vehicles that don’t meet battery procurement requirements Anti-Inflation Act.

The measure could increase tensions in Europe, where the leadership lies already worried that America’s climate law will unfairly penalize its clean energy industries, and in Washington, where the Biden administration is still struggling to implement the landmark law.

The legislation, called the American Vehicle Safety Actwould guide them financial department Stop issuing tax credits for electric vehicles that do not meet the battery procurement requirements of the Climate Act.

  • The law grants buyers of electric vehicles up to $7,500 in credit — but only if the vehicle’s battery components were manufactured in North America.
  • In addition, to qualify for full credit, the vehicle battery must contain at least 40 percent critical minerals from the United States or a country with which the United States has a free trade agreement.
  • In late December, the Treasury Department said it would delay implementation of these tough new requirements until March. But under Manchin’s bill, the requirements would come into effect retrospectively on January 1.

“It is unacceptable that the US Treasury Department … continues to make the full $7,500 in loans available without meeting all of the clear requirements of the Inflation Mitigation Act,” Manchin said in a statement.

“The IRA and EV tax credits must be implemented in accordance with Congressional intent to ensure that the United States, as a world power, is not beholden to countries that do not share our values,” he added.

“You are harming my country”

The move comes after several European leaders expressed frustration with America’s massive green subsidy package at last week’s World Economic Forum meeting in Davos, Switzerland.

  • “It’s no secret that certain elements of the design of the Anti-Inflation Act have raised a number of concerns about some of the targeted stimulus to companies,” Ursula von der Leyenthe President of the European Union said to the delegates.
  • Olaf Scholzthe Chancellor of Germany, warned that EV stimulus would hurt the German auto industry and eventually spark a green trade war.
  • And as French President Emmanuel Macron Visiting Washington late last year, he told Manchin, “You are harming my country.” Alexander Ward Reports for Politico.

A Democratic Helper for the Senate Energy and Natural Resources Committeewhich Manchin chairs, declined to comment on Europe’s concerns during a call Tuesday with reporters who were previewing the bill.

But Manchin has defended the intent of the law, telling Politico that “this law was not intended to harm anyone. It should keep America strong so we can help our friends. That’s it.”

Manchin also said last week that he failed to realize that the European Union did not have a free trade agreement with the United States when drafting the new EV credit requirements.

The new law faces an uncertain fate on Capitol Hill, where all Republicans voted against the climate bill while Democrats may be wary of tweaking one of their signature achievements.

“Changing or reopening the Anti-Inflation Act will not be as popular,” Kevin bookCEO at ClearView energy partneran independent research firm, opposite The Climate 202.

“It’s pretty clear that the Democrats, who support most of the anti-inflation bill, … have a really good feeling about credit as it stands today,” Book added. “And there could be some political risk in showing that the bill could be changed and reconsidered.”

Naturally, President Biden hinted during Macron’s state visit that there were “errors” in the climate law and “changes could be made”. However, White House press secretary Karine Jean Pierre subsequently made it clear that the administration was not striving for a legal solution.

“We have no plans to return to Congress on this,” said Jean-Pierre. “But when it comes to it [Europe’s] We will of course hold talks with our European allies if we have concerns.”

Nearby American automakers have also sounded the alarm about the difficulty of meeting the new EV credit requirements.

That’s because the key minerals used in EV batteries — lithium, cobalt, graphite and nickel — come primarily from countries that aren’t parties to US free trade agreements, such as China, Russia, Indonesia and the Democratic Republic of the Congo .

The Treasury Department may have tried to address concerns on both sides of the Atlantic, Book said, by postponing the introduction of the requirements until March.

“Anytime anybody passes a law, there’s a whole bunch of pretty competent lawyers that start looking for ways to work in it and sometimes around it,” he said. “In this case, many of these competent lawyers are in the Ministry of Finance and in the administration.”

Treasury spokesman and Alliance for automotive innovationsa trade group representing the US auto industry did not immediately respond to requests for comment Wednesday morning.

Curtis, Miller-Meeks becomes chair of the Conservative Climate Caucus

the Conservative Climate Caucus On Tuesday announced its leadership for the 118th Congress with Rep. John Curtis (R-Utah) Returning as Chairman and Rep. Mariannette Miller-Meeks (R-Iowa) as first vice chairman.

Launched in 2021, the caucus seeks to educate House Republicans on climate change as polls increasingly show younger conservative voters are interested in the issue.

Last year, Curtis led a delegation of five House Republicans United Nations climate summit in Sharm el-Sheikh, Egypt, where they touted the role of natural gas – a fossil fuel – and nuclear energy in reducing emissions. Miller-Meeks joined the delegation to the summit, known as COP27.

“I am very pleased to join Chairman Curtis as vice chair of the Conservative Climate Caucus,” Miller-Meeks said in a statement. “Iowa is a national leader in clean energy, and I look forward to bringing that perspective to the table as we continue to promote sensible renewable energy solutions.”

Dead whales and hitting economies are weighing on Biden’s massive surge in wind power

After nine large whales were found stranded on or near beaches in the Northeast in the past six weeks, offshore wind project developers have faced criticism, although government scientists say the deaths are unrelated, according to The Washington Post Evan Halper, Timothy Puko and Dino Grandoni Report.

This is the latest in a series of challenges facing a fledgling offshore wind industry that climate advocates say are critical to reducing carbon pollution. High costs, supply chain issues and setbacks from the fossil fuel industry are also generating headwinds for the burgeoning sector.

President Biden has committed to providing 30 gigawatts of new offshore wind power by 2030. So far, however, there are only seven working offshore wind turbines across the country. Achieving Biden’s goal would require installing thousands of the gargantuan machines — and no more delays.

“As we grow this industry, there will be bumps in the road,” Elizabeth Small, the newly appointed Federal Director Office of Ocean Energy Management, said Thursday at a gathering of US mayors in Washington. “We will continue to work with communities along the coast and across the country to make this a reality.”

Shareholders are asking Wall Street to stop financing fossil fuels

A group of investors on Tuesday asked six major banks to speed up the process of phasing out funding for new fossil-fuel projects to help meet global climate goals. Saiel Kishan Reports for Bloomberg News.

For shareholder proposals, the Interfaith Center for Corporate Responsibility asked JPMorgan Chase, Citigroup, Goldman Sachs, MorganStanley, Wells Fargo and Bank of America move faster to limit funding for oil and gas development and exploration. They also urged banks to be more transparent about aligning lending across industries with their own targets to reduce planet-warming emissions by 2030.

Meanwhile, New York City Comptroller Brad Lander and three city pension plans solicited lenders Tuesday, including Royal Bank of Canada, disclose their 2030 emissions reduction targets on an absolute basis.

The climate resolutions tabled at Wall Street banks last year received between 8% and 13% support at annual shareholder meetings, data from Bloomberg shows.

Why Conservatives Blame Xbox For Being “Bright”.

Conservative commentators and politicians are fighting back Xbox after its parent company, Microsoftsaid on Jan. 11 that it will update the video game console to run more efficiently, save users money on energy bills and reduce the brand’s carbon footprint, The Post Dino Grandoni reports.

The criticism follows a similar debate over gas stoves that began later this month Richard Trumka Jr.one of the four commissioners on the Consumer Product Safety Commissionsaid he hasn’t ruled out a ban or regulation of the kitchen appliance to protect public health from toxic fumes.

the Young America’s Foundationa conservative group, said “Now the Woke Brigade is after video games” in light of Microsoft’s announcement. and Senator Ted Cruz (R-Tex.) quipped on twitter this week: “First gas cooker, then your coffee, now they’re shooting at your Xbox.”

Microsoft, which has pledged to go “carbon negative” by the end of the decade, said it will schedule updates to games, apps and other software at night when renewable sources generate a higher percentage of electricity on the local grid. The company added that Xbox will also automatically update certain older consoles to include a sleep mode instead of the sleep mode that’s already the default on newer models.



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