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Job Creation: Federal Policies to Generate 53K New Employment Opportunities
Accelerated Growth from Federal Climate and Clean Energy Policies
It's remarkable to see, within the span of just six months, how quickly federal climate and clean energy policies have generated economic growth and have revolutionized our economy. According to the numbers tracked by my organization, E2, private companies have announced at least $64 billion in new investments into more than 130 projects, which is expected to create more than 53,000 new jobs.
February Announcements
In February alone, there were over 20 new clean energy projects announced in 15 states which will create at least 9,500 new jobs. These projects included a 200-employee factory in Maine that will make energy efficient heat pump hot water heaters and large solar operations in Virginia, Texas and Tennessee.
These developments benefit blue states just as much as they benefit red states. In fact, the majority of the projects announced in February took place in Republican states like Alabama and Tennessee.
Two Major Laws
Two major laws, the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act, are the ones that are primarily responsible for attracting and spurring these new investments and driving this growth. The IRA provides companies with tax credits and funding if they invest their own money in clean energy projects and related products. Not only will these businesses benefit from lower energy costs, but consumers can also benefit from tax credits for purchasing energy efficient products.
Ford's Michigan Plant
An example of this policy in action is Ford Motor Company's new $3.5 billion, 2,500-employee battery plant in Michigan. CEO Jim Farley stated that the factory is a perfect example of what federal policy was intended to do.
Predicted Investment
In the long term, the IRA will create up to 1.5 million new jobs by 2030 according to a report by the Energy Futures Initiative (EFI). Investment banking firm Credit Swisse predicts that the overall public and private investments stemming from the policies could reach up to $1.7 trillion over the next decade.
It's clear that Congress and the Biden administration should continue to nurture this growth in order to bring economic and environmental benefits to Americans. Long-term investment in climate and clean energy policies stands to bring in a high return on investment.