Amid the increasing bilateral tension between the US and China, Joe Biden’s landmark climate bill tempts China’s clean energy investors. In this article, you can learn all about US President Biden’s climate bill, its features and significance for the IAS exam GS papers 2 & 3.Â
What is the Landmark US Climate Bill?
Inflation Reduction Act (IRA) of 2022:
- It is a significant federal law in the United States that seeks to reduce inflation by decreasing the deficit, decreasing the cost of prescription drugs, and investing in domestic energy production with a focus on promoting clean energy.
- It includes a package worth $374 billion in new climate-related spending.
- Substantial incentives in the form of tax credits have been introduced to encourage the development of renewable energy, including wind and solar projects, as well as electric vehicles.
- The Bill offers funding for zero-emission technologies to help disadvantaged low-income and tribal communities. These technologies will aid in reducing greenhouse gas emissions, increasing climate resilience, and minimizing the dangers of extreme heat.
Impact of IRA
- It has given a push for re-establishing the USA as a cleantech manufacturing hub.
- It will provide the necessary boost to domestic cleantech industries and will help in reducing US’s reliance on imports.
- It will help the USA in attracting a substantial amount of foreign investment.
Chinese angle:
- There is a deepening bilateral tension between the US and China in recent times.
- Recently many Chinese firms in the US were at the receiving end of multiple sanctions on the ground of national security clauses. And this discourages the Chinese cleantech giants from investing in the US.
- Chinese investors also fear that they may not receive the same treatment as that received by investors from other countries.
- They demand that it is not enough to introduce just an IRA bill but it is also important to provide assurance of equal treatment.
- Trade barriers imposed by the USA on Chinese goods are also not a good sign for bilateral trade and investment.
What is CleanTech or Clean Technology?
- It refers to any technology, product, or service that has a positive impact on the environment and reduces or eliminates negative effects on natural resources.
- CleanTech often focuses on renewable energy sources, energy efficiency, sustainable agriculture, water management, and waste reduction.
- The goal of CleanTech is to promote sustainable economic growth while mitigating the impacts of human activity on the planet.
Joe Biden’s Landmark Climate Bill:- Download PDF Here
| Related Links | |||
| Environment & Ecology Questions in UPSC Mains GS-3 | National Electric Mobility Mission Plan 2020 | ||
| Topic-Wise GS 3 Questions for UPSC Mains | Globalisation | ||
| FAME II Scheme | WTO Agreements | ||
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