Democrats near agreement on $674b to fight climate change

WASHINGTON (BLOOMBERG) – Spending to fight climate change in the Democrats’ emerging spending plan will total more than US$500 billion (S$674 million), making it one of the biggest portions of a bill likely to top US$1.5 trillion, according to people familiar with the discussions.

While details are still being worked out, the framework is expected to include expanded tax credits for renewable power, advanced energy manufacturing and electric vehicles, as well as incentives to support investments in electric transmission, energy storage and sustainable aviation fuel.

The effort to develop a blueprint for the environmental portion of the reconciliation bill comes just days before President Joe Biden arrives in Glasgow, Scotland for a United Nations conference on climate change.

Tentative agreement on the bill’s cost was described by three people who asked not to be identified discussing closed-door negotiations. The figure was previously reported by Axios.

A methane fee remained under discussion and was undergoing changes, Democratic senators who emerged from a closed-door caucus meeting Tuesday (Oct 26) said.

“It’s in, it’s under discussion, we’re working hard to make sure that that stays,” Senator Chris Van Hollen, of Maryland, told reporters.

A plan to impose tariffs on carbon-intensive imports, known as a border adjustment tax, won’t be included in Democrats’ spending bill, Democratic Senator Sheldon Whitehouse said.

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