By Jamie Martin
Republican efforts in Congress are targeting federal programs meant to support fossil fuel competitiveness and clean energy innovations. Proposals include slashing funding for carbon capture, clean hydrogen incentives, and fossil fuel research.
Many experts warn these actions could weaken the United States' global position, especially against China and Europe. These regions are making rapid progress in clean technologies and may surpass the U.S. in key areas like carbon capture by 2040.
The 45Q tax credit for carbon capture is still in the proposed budget bill, but other support like the hydrogen tax credit 45V is under threat. Without these credits, experts say the U.S. may fall behind in producing low-emission fuels and energy products.
“If the U.S. decides to go back a couple of steps on this, Europe and Asia will gladly take the lead by leaps and bounds,” said Rudra Kapila of the group Third Way.
Meanwhile, Energy Secretary Chris Wright argues that government should limit its involvement, and fossil fuels should remain central to America’s energy supply.
Some say technologies like carbon capture are expensive, while others stress their importance for long-term competitiveness.
With global markets moving toward low-carbon imports, losing ground in technologies like CCUS and hydrogen could reduce export potential. China already holds 60% of the hydrogen tech market.
The future of fossil fuels may depend on balancing today’s energy supply with investment in cleaner alternatives. As policy debates continue, the U.S. faces a crossroads - lead in innovation or risk falling behind.
Photo Credit: usda
Categories: National