President Biden on Monday signed into law the $1 trillion Infrastructure Investment and Jobs Act, after gaining bipartisan support with 13 Republicans in the House of Representatives supporting the landmark legislation.
The new legislation earmarks billions in energy transition-focused spending, targeting areas including hydrogen development, vehicle electrification, and carbon removal technologies. We highlight below some of the key allocations of the law for ESG and sustainable infrastructure focused investors:
- Hydrogen. The infrastructure law provides billion in spending to support the development as clean hydrogen fuel, including $8 billion for the development of clean hydrogen hubs for targeting the transport and industrial sectors, $1 billion for clean hydrogen electrolysis R&D, and $500 million for hydrogen manufacturing and recycling.
- Clean mobility. Vehicle electrification and other low carbon mobility solutions has been a key focus area for the Biden administration, with an executive order recently signed mandating that zero emissions vehicles make up half of new vehicle sales in the U.S. by 2030. Supporting these goals, the new legislation includes $7.5 billion for the development of a network of electric vehicle chargers, targeting 500,000 EV chargers nationwide by 2030, $7.5 billion for zero or low-emissions buses or ferries, with $5 billion allocated to replacing diesel-powered school buses with electric buses.
- Energy storage. The legislation allocates over $7 billion to the battery supply chain, targeting areas including the minerals production and processing, battery manufacturing and recycling infrastructure, energy storage demonstration projects, and recycling R&D and design.
- Carbon removal. The law includes over $10 billion targeting carbon management technologies and infrastructure, including roughly $3.5 billion each for direct air capture hubs and carbon capture projects, $2.5 billion for commercialization of carbon storage, as well as investments in industrial decarbonization demonstration and carbon utilization programs.