Supply Chain Initiatives
SAFE is dedicated to advancing reliable sourcing – and reducing unsustainable dependencies – for products and materials essential to America’s energy, transportation, and national security needs
SAFE Report Addresses How U.S. Industry Can Benefit from Climate Imperatives, Security Concerns
Posted on: December 7, 2021
Washington, D.C. – Today, SAFE Commanding Heights issued Stoking an Industrial Renaissance: Opportunities for U.S. Decision-Makers. The report outlines policy proposals that can revitalize American manufacturing to compete in a world shaped by the rise of China and the value of reducing carbon emissions.
Shortages of medical equipment, semi-conductors, and consumer goods leading up to holiday season have focused national attention on the importance of supply chains. This report primarily addresses heavy industrial sectors such as steel, aluminum, chemical, minerals, and other foundational materials needed for products supporting energy, transportation, health, and national security.
Research has shown that the United States—along with Canada and other technologically advanced democracies—typically generates less carbon (along with other pollution) in industrial production compared to China and other emerging economies. The U.S. can further leverage this advantage through clean manufacturing practices that can level the competitive playing field in a world where carbon reduction goals drive business sourcing and consumer purchasing decisions.
“What’s become clear is that too many of our most vital materials and products are sourced and manufactured overseas by countries that share neither our interests nor our values,” notes Dr. Jeb Nadaner, Executive Director of SAFE’s Commanding Heights Initiative. “Let’s seize this opportunity to shape the future of high-tech industrial manufacturing and lead the world into a job-rich, cleaner and more secure future for ourselves and for generations to come.”
SAFE recommends policy decisions and taxpayer dollars accomplish several important goals simultaneously:
Ensuring the security of industrial supply chains and reducing dependency on China for critical products and materials;
Decreasing global carbon emissions by accelerating transition to cleaner manufacturing in the U.S. and like-minded nations; and
Enhancing job opportunities and living standards for working class Americans.
The report’s policy options include:
Tax credits & incentives to encourage capital intensive heavy industries to establish clean manufacturing within the U.S.
Loan guarantees to lower the risk of re-shoring heavy industry and adopting cleaner practices
Carbon border adjustment mechanism to provide a competitive pricing advantage to the U.S. and nations with comparable interests and environmental standards
Federal procurement requirements to provide additional market demand for “Buy Clean” as well as “Buy American”
Clean product standard to limit carbon emissions per unit of heavy industry content (akin to fuel economy standards in automobiles)
Click here to read the report.
Watch Dr. Nadaner in conversation with Axios highlighting how the U.S. can reindustrialize and regain its manufacturing edge in a clean way here.
Contact: Bridget Dunn | 202.539.7885 | [email protected]
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SAFE Commanding Heights is a non-partisan initiative dedicated to advancing critical supply chains for America’s transportation and energy needs.