Just before the holiday weekend, President Biden unveiled a $6 trillion proposal for the 2022 budget. A large portion of this proposed budget has been allocated towards fighting climate change and transitioning to a clean energy future.
The proposed 2022 budget sees a substantial increase in spending to mitigate climate change compared to 2021, a trend that is likely to continue as the Biden Administration works towards their goal of carbon neutrality by 2050.
Specifically, $36 Billion is dedicated to combating climate change, $14 Billion more than was dedicated in 2021. The bulk of the climate spending will be spent on research and development focusing on “carbon-neutral fuels such as hydrogen, grid modernization, advanced nuclear energy, carbon capture and methane emissions reduction.” (UtilityDive)
“Climate change is “an opportunity to create new industries and good-paying jobs with a free and fair choice to join a union, revitalize America’s energy communities and the economy, and position America as the world’s clean energy superpower,” the White House proposal released on Friday said.”(CNBC)
Here is a more detailed breakdown of the proposed climate related spending:
This climate spending is a way to take preventative measures to fight climate change. According to a report by reinsurance company Munich Re, “hurricanes, wildfires and floods exacerbated by climate change cost the world $210 billion in damage last year.” (cnbc) This number will surely increase as climate change worsens. Taking action and spending money now to protect against dangerous storms of the future is a proactive plan and the responsible thing to do.
It is promising to see all this capital devoted to clean energy, however this is still only the proposed budget, so we will see how things shape up.
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