By Professor Meltem Ince Yenilmez

The US Leadership Claim and Compulsory Transformation

The US has established its claim to be one of the engines of global green transformation through huge public investments with the help of the Inflation Reduction Act (IRA) and the Infrastructure Investment Plan. These steps have enabled the US to not only reduce its carbon footprint but to play a standard-setting role around the world. Despite this picture, a critical fact cannot be ignored: the US still has serious policy gaps, and the implementation of strategic sanctions to close them can no longer be postponed.

This article highlights the current achievements of the US, while at the same time analyzing its shortcomings, and explaining why mandatory regulatory measures are critical for both the economy and society in a way that the public will understand. Comparisons with international examples (Europe, China, Canada, Japan) show where the United States is lagging, and in which areas it should impose more stable sanctions.

US Green Economy Achievements: The Power of Public Investment

EPI research shows that public investment creates not only environmental benefits, but also economic added value and employment. Clean energy employment in the US grew by 2023 in 4.2% to 142,000 new jobs; this is equivalent to 56% of all job increases in the energy sector. 2.2 Million workers, especially in the energy efficiency sector, stand out as “silent heroes” in the green transformation of the US.

The impact of these investments on the local economy is striking: Industry-weakened towns such as Dalton, Georgia, have seen thousands of new jobs and economic revival thanks to IRA-backed solar panel factories. From a public point of view, this is not just a move of “green”; it means a bread gate, new opportunities and a future for children.

Deficiencies: Why Do You Need More?

Although these successes are promising, the United States still has critical shortcomings:

1. Lack of Carbon Pricing: Applications by the European Union, such as the Carbon Border Setting Mechanism (CBAM), could lead to the US falling back into global competition. Sectors that do not account for the cost of carbon emissions may have advantages in the short term, but may face export losses and trade sanctions in the long term.

2. Unequal Distribution: While most green investments are concentrated in major metropolises, rural areas and low-income communities are not benefiting enough. This can lead to a weakening of social support.

3. Regulatory and Audit Gaps: Many products and investments that companies market with a “green” label are launched without independent verification. This creates mistrust among the public and increases the risk of “greenwashing”.

Why are Sanctions Necessary?

The word sanctions may sound harsh, but what is meant here is not to punish the economy, but to direct it. For the public, this means: The pollutant pays, the cleaner wins.

First of all, the US must adopt CBAM-like border taxes. This protects US companies from global competition and discourages carbon-intensive imports. Also ‘’Transparency Sanctions for Green Investment Incentives’’ is a must since mandatory carbon reporting to state-sponsored companies and introducing domestic employment requires ‘’where are my taxes going?”. ‘’Local Content Rules’’ are strategic products such as wind turbines, solar panels and batteries, 40% domestic production requirement increases employment and guarantees the supply chain.

International Comparisons: Where Does the US Stand?

European Union: The EU takes a leading position in the carbon market. importers who pollute thanks to CBAM pay additional costs, which forces the European industry to produce more sustainably. The US has not yet developed a sanctioning mechanism at this level; this difference may lead to US products falling at a competitive disadvantage in the European market.

China: China's clean energy industries accounted for more than 2024 ’te GDP 10% of, and growth rates tripled that of the general economy. China is also a leader in green finance; by the end of 2022, it had a stockpile of 489 billion dollars in green bonds. There is no such standardisation of green bonds in the US capital market yet.

Canada: Canada creates high-paying jobs (105,000 CAD average) in the green economy, while organising large-scale training programs for local communities. While the U. S. has similar labour programs, it is lagging in terms of scope and inclusion.

Japan: Japan's Green Innovation Fund (2 trillion yen) accelerates both AR GE and private investment. While US AR GE supports are strong, they are not as targeted and integrated as Japan's.

Message for the People: This Is Not Just an Environmental Matter, It's the Economy of the Future

For most of the public, “green economy” may seem like an abstract concept. But the truth is: green transformation directly affects our pay, our bills and the future of our children.

Energy Efficiency = Lower Invoices: Insulated houses, energy-saving devices, and electric public transport is reflected directly in the public pocket.

New Job Areas = More Employment: Technicians installing solar panels, wind turbine engineers, electric vehicle manufacturing workers. Most of these occupations do not require a 4-year diploma and have average salaries above traditional sectors.

Deliberations = Fair Competition: sanctions imposed on the “Kirleten pay” principle reward honest and environmentally friendly businesses while leaving those who pollute the environment out of competition.

Strategic Roadmap for the US

1. Apply Carbon Boundary Tax: A carbon tax compliant with Europe protects the United States in global trade and encourages domestic production.

2. Develop Green Bond Market: As in the case of China, the US should establish green bond standardisation in the capital market.

3. Indigenous Employment Requirement in Public Investments: Indigenous workforce imperative in every project receiving federal support.

4. Regulatory Transparency: Carbon reporting should be made mandatory for companies receiving government incentives.

5. Inclusive Education Programs: As in the case of Canada, green vocational training for low-income and rural areas should be initiated.

Conclusion: Leadership, Responsibility and Opportunity

The U. S. has the potential to lead in the field of green economy; with giant public investments, an innovation ecosystem and an entrepreneurial culture, it can drive this transformation. Leadership is not only possible through investment, but through regulatory courage. Carbon tax, border adjustments and transparency sanctions provide a double-sided assurance that the public will win for both the environment and the economy. Decisive steps today will determine the economic competitiveness of tomorrow. If the United States seizes this opportunity, it can be a guiding one, not only for its people, but also for the global economy and the climate crisis.

Meltem Ince Yenilmez is a professor of economics at Izmir Democracy University, specialising in gender economics, labour economics, and social policy. She has held visiting research and faculty positions at leading institutions, including UC Berkeley, UC Santa Cruz, Lund University, the University of Massachusetts Amherst, the University of Göttingen, and IIM Rohtak, and has been a visiting professor at Tohoku University, Japan, since 2021.