Siemens calls for support for the US Inflation Reduction Act
Siemens, the US head of Siemens, has urged companies to promote the benefits of the Biden administration’s industrial policy to voters. Barbara Humpton, CEO of Siemens, warned that a change of government could jeopardize the tax breaks and subsidies necessary to modernize the American economy. Humpton emphasized the importance of measures such as the Inflation Reduction Act, which includes a $369 billion package to support clean energy, and stated that these issues should be non-partisan and transcend political divisions. According to Humpton, it is crucial to communicate the significance of these policies to American workers, families, and national security. Siemens, which counts the US government as its largest customer, has already relocated some component manufacturing for the solar industry from Germany to the US due to the Inflation Reduction Act.
However, Republican presidential candidates have called for the repeal of the Inflation Reduction Act if they win next year’s elections. They argue that the Act, which is President Biden’s signature climate and energy policy, is filled with tax hikes and green subsidies that benefit China. This has raised concerns among energy executives who fear that the loss of tax credits could undermine the profitability of their projects and hinder the country’s emissions reductions. The growing political attacks on the Inflation Reduction Act have caused uncertainty in the industry, which requires long-term investments and stability. Business leaders, including Humpton, hope that the concentration of clean energy projects in Republican states will ensure the survival of the Act’s tax credits, regardless of who is in office. Humpton stated that regardless of political rhetoric, the clean energy transition is here to stay and that business needs stability and predictability. She also highlighted the positive impact of Biden’s industrial policy measures, such as the Inflation Reduction Act, on employment, manufacturing, and attracting new industries to the US, such as battery manufacturing.
Overall, Siemens is advocating for support for the Inflation Reduction Act and emphasizing the importance of clean energy policies for the American economy, regardless of political affiliations.