Ada Recinos, Deputy Press Secretary, ada.recinos@sierraclub.org (Pacific Time)
Washington, DC - The Sierra Club has joined labor, faith, and consumer rights partners to call on the United States Trade Representative (USTR) to proceed with implementing the Inflation Reduction Act (IRA) as intended despite a state-to-state dispute from the People’s Republic of China at the World Trade Organization (WTO). China’s challenge at the WTO undermines U.S. climate action and our investments in good green jobs and healthy communities. Sierra Club has been advocating for a Climate Peace Clause, which would exempt countries’ climate change mitigation and green jobs policies from such attacks.
“All of the progress we are making in the US to slash greenhouse gas emissions from the industrial sector will be in vain if our clean manufacturing investments are threatened by actors who want to preserve the dirty status quo,” said Iliana Paul, Deputy Director of Sierra Club’s Industrial Transformation campaign. “We need a Climate Peace Clause so the US and our partners can continue to up the ante on policies that will spur a clean energy economy that supports workers and communities. Instead of attacking the IRA and similar policies, other countries should be trying to replicate this historic effort to fight climate change.”
The joint comments submitted to USTR criticize the use of antiquated trade rules to threaten tax credits for electric vehicles, batteries, and clean energy components. Such attacks undermine the country’s ability to fight climate change and could undo desperately needed investments in left-behind communities. These concerns were echoed by U.S. officials responding to the challenge brought by China at the WTO. Sierra Club also signed a letter with Public Citizen, United Steelworkers, Machinists, and UAW to President Biden last year urging the administration to protect IRA investments from state-to-state disputes.
The formal launch of China’s dispute with the United States over certain IRA tax credit programs comes on the heels of renewed tariffs on goods like aluminum, steel, and clean energy components made in China, which the United States/White House levied due to China’s unfair trade practices. When used in a comprehensive strategy, tariffs can be a strong policy tool to promote clean manufacturing and good jobs at home and abroad. A number of domestic manufacturing and labor leaders also strongly support the tariffs to protect American workers and industry.
Last year, the Sierra Club released a discussion paper on a Climate Peace Clause. We also joined a multi-stakeholder coalition letter to President Biden urging the administration to institute a Climate Peace Clause with the European Union to protect existing and future climate dumping fee policies. As the US continues to bolster its manufacturing sector to tackle greenhouse gas emissions, deliver good green jobs, and support healthy communities, trade challenges based on outdated rules like the one targeting IRA tax credits will continue to threaten the clean energy future we need.
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.