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    Tracking US progress on the path to a decarbonized economy

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    Investments in new technologies and infrastucture that help reduce greenhouse gas emissions — everything from electric vehicles to heat pumps — are growing rapidly in the United States. Now, a new database enables these investments to be comprehensively monitored in real-time, thereby helping to assess the efficacy of policies designed to spur clean investments and address climate change.

    The Clean Investment Monitor (CIM), developed by a team at MIT’s Center for Energy and Environmental Policy Research (CEEPR) led by Institute Innovation Fellow Brian Deese and in collaboration with the Rhodium Group, an independent research firm, provides a timely and methodologically consistent tracking of all announced public and private investments in the manufacture and deployment of clean technologies and infrastructure in the U.S. The CIM offers a means of assessing the country’s progress in transitioning to a cleaner economy and reducing greenhouse gas emissions.

    In the year from July 1, 2022, to June 30, 2023, data from the CIM show, clean investments nationwide totaled $213 billion. To put that figure in perspective, 18 states in the U.S. have GDPs each lower than $213 billion.

    “As clean technology becomes a larger and larger sector in the United States, its growth will have far-reaching implications — for our economy, for our leadership in innovation, and for reducing our greenhouse gas emissions,” says Deese, who served as the director of the White House National Economic Council from January 2021 to February 2023. “The Clean Investment Monitor is a tool designed to help us understand and assess this growth in a real-time, comprehensive way. Our hope is that the CIM will enhance research and improve public policies designed to accelerate the clean energy transition.”

    Launched on Sept. 13, the CIM shows that the $213 billion invested over the last year reflects a 37 percent increase from the $155 billion invested in the previous 12-month period. According to CIM data, the fastest growth has been in the manufacturing sector, where investment grew 125 percent year-on-year, particularly in electric vehicle and solar manufacturing.

    Beyond manufacturing, the CIM also provides data on investment in clean energy production, such as solar, wind, and nuclear; industrial decarbonization, such as sustainable aviation fuels; and retail investments by households and businesses in technologies like heat pumps and zero-emission vehicles. The CIM’s data goes back to 2018, providing a baseline before the passage of the legislation in 2021 and 2022.

    “We’re really excited to bring MIT’s analytical rigor to bear to help develop the Clean Investment Monitor,” says Christopher Knittel, the George P. Shultz Professor of Energy Economics at the MIT Sloan School of Management and CEEPR’s faculty director. “Bolstered by Brian’s keen understanding of the policy world, this tool is poised to become the go-to reference for anyone looking to understand clean investment flows and what drives them.”

    In 2021 and 2022, the U.S. federal government enacted a series of new laws that together aimed to catalyze the largest-ever national investment in clean energy technologies and related infrastructure. The Clean Investment Monitor can also be used to track how well the legislation is living up to expectations.

    The three pieces of federal legislation — the Infrastructure Investment and Jobs Act, enacted in 2021, and the Inflation Reduction Act (IRA) and the CHIPS and Science Act, both enacted in 2022 — provide grants, loans, loan guarantees, and tax incentives to spur investments in technologies that reduce greenhouse gas emissions.

    The effectiveness of the legislation in hastening the U.S. transition to a clean economy will be crucial in determining whether the country reaches its goal of reducing greenhouse gas emissions by 50 percent to 52 percent below 2005 levels in 2030. An analysis earlier this year estimated that the IRA will lead to a 43 percent to 48 percent decline in economywide emissions below 2005 levels by 2035, compared with 27 percent to 35 percent in a reference scenario without the law’s provisions, helping bring the U.S. goal closer in reach.

    The Clean Investment Monitor is available at cleaninvestmentmonitor.org. More

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      MIT welcomes Brian Deese as its next Institute Innovation Fellow

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      MIT has appointed former White House National Economic Council (NEC) director Brian Deese as an MIT Innovation Fellow, focusing on the impact of economic policies that strengthen the United States’ industrial capacity and on accelerating climate investment and innovation. Deese will begin his appointment this summer. 

      “From climate change to U.S. industrial strategy, the people of MIT strive to make serious positive change at scale — and in Brian Deese, we have found a brilliant ally, guide, and inspiration,“ says MIT President Sally Kornbluth. “He pairs an easy command of technological questions with a rare grasp of contemporary policy and the politics it takes for such policies to succeed. We are extremely fortunate to have Brian with us for this pivotal year.” 

      Deese is an accomplished public policy innovator. As President Joe Biden’s top economic advisor, he was instrumental in shaping several pieces of legislation — the bipartisan Infrastructure Investment and Jobs Act, the CHIPS and Science Act, and the Inflation Reduction Act  — that together are expected to yield more than $3 trillion over the next decade in public and private investments in physical infrastructure, semiconductors, and clean energy, as well as a major expansion of scientific research. 

      “I was attracted to MIT by its combination of extraordinary capabilities in engineering, science, and economics, and the desire and enthusiasm to translate those capabilities into real-world outcomes,” says Deese. 

      Climate and economic policy expertise

      Deese’s public service career has spanned multiple periods of global economic crisis. He has helped shape policies ranging from clean energy infrastructure investments to addressing supply chain disruptions triggered by the pandemic and the war in Ukraine. 

      As NEC director in the Biden White House, Deese oversaw the development of domestic and international economic policy. Previously, he served as the global head of sustainable investing at BlackRock, Inc., one of the world’s leading asset management firms; before that, he held several key posts in the Obama White House, serving as the president’s top advisor on climate policy; deputy director of the Office of Management and Budget; and deputy director of the NEC. Early in the Obama Administration, Deese played a key role in developing and implementing the rescue of the U.S. auto industry during the Great Recession. Deese earned a bachelor of arts degree from Middlebury College and his JD from Yale Law School.

      Despite recent legislative progress, the world still faces daunting climate and energy challenges, including the need to reduce greenhouse gas emissions, increase energy capacity, and fill infrastructure gaps, Deese notes.

      “Our biggest challenge is our biggest opportunity,” he says. “We need to build at a speed not seen in generations.”  

      Deese is also thinking about how to effectively design and implement industrial strategy approaches that build on recent efforts to restore the U.S. semiconductor industry. What’s needed, he says, is an approach that can foster innovation and build manufacturing capacity — especially in economically disadvantaged areas of the country — while learning lessons from previous successes and failures in this field. 

      “This is a timely and important appointment because Brian has enormous experience at the top levels of government in shaping public policies for climate, technology, manufacturing, and energy, and the consequences for  shared prosperity nationally and globally — all subjects of intense interest to the MIT community,” says MIT Associate Provost Richard Lester. “I fully expect that faculty and student engagement with Brian while he is with us will help advance MIT research, innovation, and impact in these critical areas.”

      Innovation fellowship

      Previous MIT Innovation Fellows, typically in residence for a year or more, have included luminaries from industry and government, including most recently Virginia M. “Ginny” Rometty, former chair, president, and CEO of IBM; Eric Schmidt, former executive chair of Google’s parent company, Alphabet; the late Ash Carter, former U.S. secretary of defense; and former Massachusetts Governor Deval Patrick.

      During his time at MIT, Deese will work on a project detailing and mapping private investment in clean energy and other climate-related activities. He will also interact with students, staff, and faculty from across the Institute. 

      “I hope my role at MIT can largely be about forging partnerships within the Institute and outside of the Institute to significantly reduce the time between innovation and outcomes into the world,” says Deese. More