The Biden-Harris administration released on March 31st, 2021 a new infrastructure plan that addresses the climate crisis and accelerates green innovation. The plan is called American Jobs Plan and will invest about $2 trillion over this decade on infrastructure, the care economy and new jobs.
The new plan is designed to promote long-term economic recovery. It aims to keep the US competitive while addressing the economic slowdown from the pandemic and simultaneously mitigate the climate crisis. If the plan becomes approved over the summer, it would be the most important climate legislation in US history.
At least $1 trillion are intended for sectors that fall under the climate change and clean energy realm. As part of the President’s goal of net zero America by 2050, the plan eliminates “tax preferences” for fossil fuels including subsidies, loopholes, and special foreign tax credits.
The American Jobs Plan And Support For Carbon Capture
The plan will support the carbon capture and storage industry by establishing 10 pioneer facilities that demonstrate carbon capture retrofits for large steel, cement, and chemical production plants. Under the bipartisan SCALE Act, the plan also backs large-scale sequestration efforts.
Another proposed measure that aims to accelerate carbon capture and storage deployment is an expansion of the Section 45Q tax credit. The changes include making the credit a direct pay and easier to use for hard-to-decarbonize industrial applications. The plan also proposes investments in direct air capture and retrofits of existing power plants.
If the American Jobs Plan becomes a law, it would mark a historic investment in advanced manufacturing and new technology sectors dedicated to decarbonizing the U.S. economy. Those investments are expected to foster job creations and become a source of long-term economic growth. Transitioning the economy to carbon neutrality is considered to have the potential to increase future competitiveness of the country and improve its energy security.