Leaving the misnamed inflation reduction act (ira) subsidies intact will actively undermine America’s return to energy dominance and national security. In 2024 alone, solar represented 61% of all new electricity generation in our nation, with more expected this year. By the end of this year, wind generation in the US is expected to increase 11% from 2023 because of these subsidies. These numbers do not reflect a natural market shift. They are the result of government subsidies that distort the U.S. energy sector, displace reliable coal and natural gas and the domestic jobs they produce, and put the stability and independence of our electric grid in jeopardy.
To see the consequences of this path, we need only to look at Europe’s over-reliance on renewables(1), which has left them vulnerable and reliant on Russian oil and gas. Meanwhile, China gladly sells us solar panels and electric vehicle components while expanding its own coal capacity to maintain grid stability and economic advantage. If we do not course correct, we will trade American energy dominance for dependence on hostile regimes.
We must fully repeal the ira’s dangerous green subsidies. Doing so will:
-Save Taxpayers $1 trillion. Estimates project the inflation reduction act will cost between $825 billion—according to the Congressional Budget Office—and over $1 trillion over the next decade. Eliminating these subsidies will allow us to rein in the debt and reallocate funds to genuine national priorities.
-Ease inflation and spur economic growth. ira subsidies exacerbate inflation and push up interest rates, making it harder for Americans to buy homes and cars and start businesses. Repealing them will provide immediate financial relief and create a stronger economic environment.
-Restore energy affordability and security. ira subsidies force utilities to overbuild solar and wind capacity, weakening grid reliability and increasing energy costs. Ending these subsidies will restore affordability and stability to our energy supply.
Meanwhile, in 2021, as part of a commitment to fight climate change, China pledged to the biden regime to stop funding coal development and use abroad—not domestically, mind you, but just to stop helping developing countries develop mines and coal-fueled power plants. But a report by the climate think tank Global Energy Monitor (GEM) shows that, as with so many other pledges, China is breaking its commitment and is continuing to build out coal power plants in a number of countries, particularly in the BRICS nations (Brazil, Russia, India, China, and South Africa), and has subsequently expanded to include Belarus, Bolivia, Cuba, Egypt, Ethiopia, Indonesia, Iran, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, the United Arab Emirates, and Uzbekistan.
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