President Biden recently kicked off his “Investing in America” tour with a visit to North Carolina. It’s no wonder why the state was selected as a showcase: already a regional leader in growing the clean energy economy, the state is now riding the nationwide wave of investment in clean energy manufacturing, supply chains, and deployment.
The president’s visit included a tour of the Durham campus of semiconductor manufacturer Wolfspeed. He also highlighted the company’s commitment to build a $5 billion facility in Siler City making silicon chips — a crucial electric vehicle component.
And that is just one example of the clean energy boom in the Tarheel State. At a 272,000-square-foot plant in Wendell, Siemens is ramping up electric vehicle charger production for buses, trucks, and other large vehicles. In Liberty, Toyota has dramatically expanded its plans for a battery plant, and is now committing $3.8 billion to the project, which will employ 2,100 workers.
These investments have been boosted by a powerful mix of federal and state policies that are highlighted by the Inflation Reduction Act.
Passed last year, the Inflation Reduction Act represents the largest-ever investment in U.S. history to tackle the climate crisis, fortify domestic clean energy manufacturing, strengthen U.S. energy security, and slash costs for consumers and businesses. Built on a broad mix of tax credits, rebates, and grants, it has already unleashed a nationwide clean energy investment rush, with companies announcing projects worth tens of billions of dollars that are generating tens of thousands of jobs in states across the country. It has provided example after example of how the public and private sectors are working closely together to fully seize the economic opportunity of the clean energy transition.
North Carolina is especially well-positioned to capitalize on this opportunity because it has made clear to all those looking to invest in clean energy that the state is open for business. North Carolina was one of the earliest adopters of a renewable portfolio standard that sets increasing targets for clean resources to power its electricity, establishing a strong foundation for the state’s clean energy industry that today employs 88,000 people.
Additional policies — including a 2021 law that establishes a binding goal to reduce carbon emissions from the power sector 70% by 2030 and achieve 100% clean electricity by 2050 — have helped North Carolina set a benchmark in the Southeast for clean energy policy. And Gov. Roy Cooper has bolstered these efforts with executive action to set an economy-wide net zero emissions goal by 2050, incorporate environmental justice into state decision-making, and encourage the widespread adoption of electric vehicles that are better both for the climate and for the bottom line of companies and consumers.
Now, with the clean energy manufacturing boom underway, we’re seeing all this work begin to pay off.
The economic benefits of the clean energy transition go to show why major companies were among the top champions of these policies as North Carolina and the U.S. charted this path. Business leaders know that deploying domestically produced clean energy at scale is a major engine for job creation, economic growth, energy security, and utility cost stabilization and reduction. What’s more, they know that taking action that prevents the worst impacts of climate change — which threatens the facilities, workforces, supply chains, and infrastructure that companies rely on — is a critical risk management strategy that protects their investors and other stakeholders.
The private-sector enthusiasm extends well beyond companies that are directly in the clean energy and clean transportation industries. For example, apparel company VF Corp. — whose globally recognizable brands include The North Face, Timberland, and Vans — announced plans to build four utility-scale solar projects in Greensboro to churn out nearly a quarter of the electricity the company uses.
Earlier this month, companies with headquarters or major operations in North Carolina — including Gaia Herbs, Nestlé, SAS, and Sierra Nevada Brewing Company — reaffirmed their commitment to robust clean energy policy by urging state policymakers to expand access to clean power and transportation technologies. At the national level, thousands of businesses of all sizes and industries — including dozens of S&P 100 companies — were among the strongest advocates for the Inflation Reduction Act’s climate provisions. Businesses and trade groups were also major supporters of 2021’s bipartisan federal Infrastructure Investment and Jobs Act, which includes several important clean energy, clean transportation, and climate resilience measures.
With a solid policy framework in place, North Carolina is already reaping the benefits of the federal laws. But with the Inflation Reduction Act rolling out and states across the country competing for major projects, this is not the time to rest on our laurels. It’s time for North Carolina to double down on this economic opportunity with additional policy action that ensures the state remains a leader in the crucial decades to come.
Alli Gold Roberts and Zach Friedman lead the policy program at Ceres, a sustainability advocacy nonprofit that works with companies on climate solutions and polices in North Carolina.