There is nothing beautiful about the One Big Beautiful Bill Act’s obstruction of US clean energy progress and American economic competitiveness.
Investors in public companies are concerned that the proposed bill, now before the Senate after it was passed by House Republicans by a one-vote margin, prioritizes culture war skirmishes over innovation and long-term economic stability and growth.
In its current form, the tax and budget bill would slash funding for research and development in technology and clean energy. Central to the bill is the repeal of key provisions of the Inflation Reduction Act, despite the IRA’s success in driving $321 billion in new private investment across 2,369 domestic clean-energy facilities.
The House bill’s accelerated phaseout of tax credits that support domestic manufacturing of solar panels, wind turbines, batteries, and electric vehicles will be devastating for American competitiveness and job creation. The administration has already decimated $8 billion in renewable energy investments along with 10,000 high-quality jobs, simply by creating uncertainty around the future of incentives. Ending those incentives permanently will gut these areas of technological progress for the US.
If there is indeed an “energy emergency” in this nation, undermining the renewable energy sector takes us in the wrong direction. Renewables are currently the US’s leading source of new domestic generating capacity. Instead of bolstering US technological and economic leadership in energy development, the proposed budget cuts key investment programs and coddles legacy fossil fuel industries from next-generation competition.
Pulling the plug on these crucial investments weakens the innovation ecosystem that historically fueled America’s economic leadership. That puts the US at a competitive disadvantage with geopolitical rivals like China.
Last year, China invested more in clean energy than the US, EU, and UK combined. It has overtaken the US in university and government R&D spending and continues to advance its technological leadership. From 2003 to 2007, the US led in 60 of 64 critical technologies. In the most recent five-year period of 2019 to 2023, its lead in critical technologies plummeted to only 7 out of the 64; China now leads development in 57 critical technologies.
EV leaders and laggards
As just one example, Chinese electric vehicles now account for 76% of global market share. As China leaps ahead, the proposed budget will make it increasingly difficult for the US to close this competitive divide.
IRA funding provides a critical and much-needed opportunity for US automakers to reclaim their competitive edge. IRA incentives supported the development of nearly two dozen US-based EV assembly and battery manufacturing plants, developing a domestic workforce with EV and battery expertise.
Ford CEO Jim Farley cited the IRA as a key impetus to building new battery plants in the US instead of Mexico or Canada. The IRA production and consumer credits lowered costs for automakers, enabling more competitive EV pricing while boosting both supply and consumer demand to support long-term plant success.
Driven by fossil fuel lobbying and culture war rhetoric, America is missing the global shift toward innovation and research leadership. Eliminating clean energy incentives will not stop the global tide of decarbonization. Instead, this short-sighted policy reversal simply creates risks for the companies in which we invest by undermining their ability to compete, attract capital, and create long-term value.
The budget bill’s backward-facing funding decisions are of great concern to investors who want US companies to not only retain value but create growth into the future. This means being viable in a global market which is quickly decarbonizing. Indeed, over 2,000 companies and hundreds of billions in private investment have called on Congress to preserve clean energy tax credits.
Innovation requires dedicated investment in people, infrastructure, and institutions. The proposed House budget doesn’t just slow American progress, it is likely to cement our mediocrity. Passing the House bill as-is will undermine what made America an exceptional leader in the first place—innovation. Innovation in one sector drives progress across many. Weakening support for advanced technologies risks slowing growth across the entire US economy.
Business needs a stable policy environment in which to succeed—one that rewards long-term thinking, is guided by evidence, and prioritizes American economic innovation over political expediency. Smart investment in a sustainable economy promotes US competitiveness. The proposed House budget bill may score short-term political points, but does so at the expense of our economic future and a livable planet.
The United States cannot afford to abandon its leadership in clean energy and innovation. We look to the Senate to support US global competitiveness in the clean energy technologies of the future by restoring clean energy technology incentives.
Danielle Fugere is president and chief counsel, and Diana Myers is climate and energy coordinator, at As You Sow, a nonprofit that seeks to harness shareholder power to create lasting change and align investments with values.
