Executives have reportedly met with the former president's campaign to tout the benefits of Biden's signature Inflation Reduction Act
Former President Donald Trump has been publicly critical of the sitting president’s signature climate bill and its benefits for clean energy. But even the oil lobby apparently wants to save the Inflation Reduction Act — just without some of the benefits for rival industries and products.
Executives at oil giants Exxon Mobil (XOM), Phillips 66 $PSX (PSX), and Occidental $OXY Petroleum (OXY) have touted the benefits of the IRA in conversations with Trump’s campaign, The Wall Street Journal reports. The 2022 legislation provides $369 billion in tax breaks and subsidies for clean energy. It’s also pushed companies — including those in the oil industry — to invest $128 billion in projects working on renewable fuel, carbon capture, and other technology.
Occidental CEO Vicki Hollub in May told the Republican presidential nominee that the IRA’s tax credits have helped the company invest in carbon capture, which allows companies to collect carbon directly from the air, the Journal reports. Exxon, which has pledged to invest $15 billion to slash carbon emissions through new investments, has also told Trump’s team it wants to save parts of the IRA.
The oil lobby would certainly welcome the elimination of some aspects of the IRA, especially tax credits for renewable energy and electric vehicles. The EV industry has been by far the biggest beneficiary of the IRA, which has resulted in $77.7 billion invested through 143 projects.
But, at least publicly, Trump hasn’t made the distinction between what he would cut and what he would save from the bill, although he has been critical of funding for electric vehicle charging infrastructure and EV tax credits. In recent months, he has pledged to rescind any allocated funding that isn’t spent before he potentially returns to the White House and “impose an immediate moratorium” on new spending and grants.
“To further defeat inflation, my plan will terminate the Green New Deal, which I call the Green New Scam,” Trump said last month at the Economic Club of New York, referring to the IRA. “It actually sets us back, as opposed to moves us forward,” he added.
Trump has gone to great lengths to court the oil lobby, which has spent about $200 million on lobbying and donated almost $47 million to Republicans over the past two years, this election cycle.
At a meeting with industry executives in April, he offered a “deal to “immediately reverse dozens” of Biden’s environmental rules if they could raise $1 billion for his campaign. He’s also proposed auctioning off more leases for oil drilling in the Gulf of Mexico and reversing restrictions on drilling in the Alaskan Arctic as part of his “drill, baby, drill” promises.
His rival for the White House, Vice President Kamala Harris, has touted the benefits of the IRA on the campaign trail, often pointing to its benefits for manufacturers. If elected, she has pledged to continue backing investment in clean energy.
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