Ceres applauds the Build Back Better budget framework announced today by President Biden, and urges Congress to swiftly finalize what will be the largest-ever climate and clean energy legislation in U.S. history.Â
“When it is signed into law, the Build Back Better framework will spark innovation and jobs in the U.S., directing the level of investments toward the equitable and competitive clean energy economy that businesses, investors, and communities across the U.S. demand,” said Anne Kelly, vice president of government relations, Ceres. “Despite difficult and complex negotiations among lawmakers, the final result presents an opportunity to make the significant investments in the U.S. technologies, manufacturing, and supply chains we need to address the climate crisis, advance justice, and achieve our economic goals. We thank the Biden administration and members of the U.S. Senate and House of Representatives for their work to ensure climate policy remains central to this package, and we hope these provisions are prioritized as the legislation is finalized, passed, and signed by President Biden soon.”Â
The more than $550 billion in climate investments included in the framework represents the largest component of the Build Back Better framework, making up more than a quarter of the broader budget framework. The investments feature robust tax credits for clean energy and transportation over the next decade, to help consumers and businesses save money as they transition to this technology while providing a strong market signal and predictable environment for investors. They are further bolstered by other incentives and programs for clean electricity, transportation, industry, buildings, and agriculture, as well as new environmental justice and climate resiliency programs.
These measures would be complemented by the climate, energy, and environmental justice investments in the Infrastructure Investments and Jobs Act, which received bipartisan support in the U.S. Senate over the summer and is pending before the House of Representatives. That package includes billions of dollars in funding for clean transportation, electric vehicle charging infrastructure, upgrades to the electric grid, pollution cleanup, water infrastructure improvements, battery storage manufacturing, and resiliency initiatives that will protect existing infrastructure from the extreme weather caused by climate change.
The Build Back Better framework comes just days before President Biden leaves for the COP26 global climate summit in Glasgow, a critical meeting where world leaders will seek to dramatically increase their ambition to confront the climate crisis and enact policies to reduce greenhouse gas emissions, prevent its worst impacts, and compete in the markets of tomorrow.
“The Build Back Better package would mark the largest climate legislation in U.S. history, and promises to play a significant role in helping the nation achieve its goal of reducing climate pollution by at least 50% by 2030,” Kelly said. “We are confident that these investments, as well as those in the Infrastructure Investments and Jobs Act, will help guide companies, investors, state and local governments, federal policymakers, and other stakeholders as they take complementary actions to dramatically reduce the greenhouse gas emissions that threaten our economy and our planet. Today’s announcement also sends a vital signal to other industrialized countries about U.S. climate leadership as the President heads to Glasgow for the global climate talks.”
Throughout 2021, major companies and investors have advocated for Congress to include strong climate and environmental justice policies in both the Build Back Better and bipartisan infrastructure packages. These efforts have included the annual LEAD on Climate lobbying push in May and the America Is All In coalition’s Hill Day in July. This week, more than 160 companies and investors recently signed a letter calling for the strongest possible climate provisions in the Build Back Better Act, as did 17 major corporations in a separate letter sent to Congress last week. Three founding partners of the Investor Agenda coalition also recently called for passage of a budget reconciliation package with the bold climate provisions.
“The mix of clean energy incentives and other investments that the President announced today will have a meaningful impact on reducing U.S. climate pollution and growing a cleaner, more just economy, and we urge Congress to finalize these packages as soon as possible,” Kelly said. “This is a moment to celebrate and build upon in the future. The many leading companies and investors that championed even bolder climate measures will continue pushing for ambitious climate and environmental justice policy at all levels of government.”
Ceres is a nonprofit organization working with the most influential capital market leaders to solve the world’s greatest sustainability challenges. Through our powerful networks and global collaborations of investors, companies and nonprofits, we drive action and inspire equitable market-based and policy solutions throughout the economy to build a just and sustainable future. For more information, visit ceres.org and follow @CeresNews.