Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Bill Gates pledges $1.5 billion for infrastructure bill’s new climate projects

Bill Gates pledges $1.5 billion for infrastructure bill’s new climate projects

Gates says his fund could spend money on projects aimed at slowing greenhouse gas emissions

Microsoft Corp. co-founder Bill Gates said his climate investment fund will commit $1.5 billion for joint projects with the U.S. government if Congress enacts a program aimed at developing technologies that lower carbon emissions.

A roughly $1 trillion infrastructure bill passed by the Senate this week would give the Energy Department $25 billion for demonstration projects funded through public-private partnerships, part of more than $100 billion to address climate change. The House hasn’t yet approved the legislation.


Mr. Gates, in an interview with The Wall Street Journal, said a fund run by his Breakthrough Energy could spend the money over three years on projects aimed at slowing the greenhouse-gas emissions that cause climate change. The Breakthrough projects, which would have to compete with other applicants for the funds, could include emissions-free fuel for planes and technology to suck carbon-dioxide out of the air.

"Critical for all these climate technologies is to get the costs down and to be able to scale them up to a pretty gigantic level," Mr. Gates said. "You’ll never get that scale up unless the government’s coming in with the right policies, and the right policy is exactly what’s in that infrastructure bill."

Breakthrough will likely shift funding for the biggest projects to Europe and Asia instead if the package doesn’t become law, he added.

The Energy Department program hasn’t been a flashpoint in debate over the legislation, but some Republicans have criticized the overall bill for what they see as excessive spending and an increase in federal powers. The bill passed the Senate in a 69-30 vote Tuesday, with only Republicans opposed. "Washington must learn to live within its means," said a statement this week from Sen. John Barrasso of Wyoming, the top Republican on the Senate Energy Committee.

To address climate change, the bill includes more than $100 billion for programs that improve the electrical grid, harden infrastructure against natural disasters and subsidize a transition to emissions-free cars, trucks and buses.

The public-private partnership program is one way the bill embraces industrial policy, the idea that governments direct critical industries rather than leaving things to the market.

Gregory Nemet, a University of Wisconsin professor who has written a book about recent innovation in solar power, said the policy shift will put pressure on government officials who will have to sort through complex market dynamics while managing demands from companies seeking profits and lawmakers pushing for home-state handouts.

Industrial policy "is really a good way of accelerating innovation, but it’s risky because it goes beyond anything we’ve done in the last four decades," Mr. Nemet said, referring to the U.S.

Public-private partnerships have helped commercialize nascent energy technology before, going back to the U.S. nuclear-power industry in the mid-20th century. But the results were mixed and politically controversial when financial-crisis recovery funds went to similar efforts at the Energy Department a decade ago.

Some of those funds guaranteed a loan to Solyndra LLC, a solar panel maker that later went bankrupt, turning the deal into a political attack point for the Energy Department’s critics. The agency also loaned funds to Tesla Inc., the electric car maker that is now one of the world’s most valuable companies.

"Our political leaders have to accept that there’s going to be some failure," said David Hart, senior fellow at the Information Technology and Innovation Foundation, a science and technology policy think tank. "Ultimately there has to be a climate policy that creates this market."

Mr. Gates hopes that in addition to federal funds, the $1.5 billion will attract other investors to raise as much as $15 billion for various projects. Mr. Gates will provide some of the initial funds through a Breakthrough program called Catalyst, which is also in the process of raising money from others, he said.

After Tuesday’s Senate vote, a coalition of the biggest auto and utility trade groups and several environmental groups made an announcement similar to the one by Mr. Gates. Their joint National EV Charging Initiative would spur and coordinate investments in projects that become part of the legislation’s $7.5 billion program to install more charging stations for electric vehicles.

The fact that these pledges are being announced even before Congress approves the funding is a sign of support in the business community for these programs, Energy Secretary Jennifer Granholm said in a joint interview with Mr. Gates.

"It shows that the private sector is ready to lead the fight to reduce greenhouse-gas emissions and achieve [an emissions-free] economy in partnership with government," she said.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×