The introduction of the Biden administration’s Inflation Reduction Act IRA has spurred a rapid acceleration of the green transition, supported by high levels of domestic manufacturing and a rapid increase in the country’s renewable energy capacity. The IRA is the most far-reaching U.S. climate policy to date and is highly competitive, with many other countries around the globe now racing to develop their own climate policies.
However, there is still significant room for growth in some long-overlooked sectors, including offshore wind and heat pumps. Much of the clean energy manufacturing is taking place in cities previously known for their heavy industry and coal mining. The Biden administration has emphasised the need to invest in disadvantaged regions of the U.S., including ex-mining and industrial communities. The Midwest and Southeast are quickly transforming to become known as the “Battery Belt.