Biden's ambitious energy loan program faces uncertainty amid potential political shifts

The Biden administration's ambitious plan to fuel next-generation energy projects with more than $200 billion is at a crossroads, with potential political changes ahead casting uncertainty on its future.

Kelsey Tamborrino and Brian Dabbs report for POLITICO.


In short:

  • The Department of Energy has $217.6 billion to lend for energy projects but has approved just over $25 billion, reflecting the challenge of fulfilling Biden's climate goals.
  • The loan program, revitalized under Biden, aims to transform the U.S. energy sector but faces potential jeopardy with a political shift.
  • A significant portion of the program’s funding is directed toward innovative projects, including those in solar energy, hydrogen production, and lithium mining.

Key quote:

"We don’t want to leave anything on the table. But I understand that you’ve got to do it right."

— Jennifer Granholm, U.S. Energy Secretary

Why this matters:

The transition to cleaner energy sources could secure the U.S.'s competitive edge globally, particularly against aspirational adversaries like China. With the looming possibility of a shift in administration, the direction and pace of this transition could dramatically change, underscoring the intricate balance between policy, innovation, and the geopolitical landscape.

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