Inshoring, offshoring, and friendshoring

Welcome back to The Strawman, the daily climate newsletter that’s like the ketchup on your fries - we always bring the flavour.

Today, we’re diving into a spicy topic - the US’ approach to managing relationships with other countries as they figure out a route to Net Zero that works for them.

Let’s dive in.

Can’t go it alone

Like the #inspirational quotes you see on social media, in the race to Net Zero, if you want to go far, you have to go together. Everyone loves a good team up, right?

The Avengers, Justice League, and now the US and Japan - but this superhero team might not be enough to achieve Biden's climate dreams.

According to the CEO of Mitsubishi Heavy Industries’ American arm, it would be tough for America to build and produce everything that it needs domestically - thoughts that have been echoed by members of other industries in the US.

The Inflation Reduction Act's aim to rely on domestic manufacturing and allied nations might need to add a third musketeer, and that could be the giant panda in the room; China’s like that crazy ex that won’t let you go - they’re holding on tight.

China’s cleantech dominance

China is the Costco of cleantech - they've got everything you need, and in bulk. They're dominating the world stage, making the most solar panels, batteries, and electric vehicles.

Trying to detach from these established supply chains looks hard - and The Brookings Institution has even warned that clean energy shouldn't become another victim of the US-China geopolitical tussle. After all, saving the planet should trump saving face, right?

As relations with China have soured, the Biden administration has tried out “friendshoring”, working closely with allies like Japan for things such as minerals, and are in the process of signing a new deal with the EU too.

The problem is these are short-term solutions; manufacturing capacity in allies like Japan are decreasing due to aging populations and changes in the workforce. Turns out the love-hate relationship with China might need a whole lotta love to get us to Net Zero.

See ya tomorrow,

The Strawman