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Kigali ratified: What it means for manufacturing

Oct 5, 2022 | Admin, Latest News, Manufacturing

Long-term support for sustainable development in manufacturing is one step closer.

On September 21st, the senate voted to ratify the Kigali Amendment. It’s an international accord focused on reducing greenhouse gases, and it’s been hailed as more impactful than any previous accord the United States has agreed to. What makes this amendment particularly meaningful for the manufacturing industry is how it changes the 1987 Montreal Protocol in an effort to reduce hydrofluorocarbons (refrigerants used in many manufacturing products) and instead prefer the use of next-gen alternatives, according to the NAM, which strongly advocated for the amendment’s ratification. The amendment received bipartisan support with a 69-27 vote and is expected to build upon previous environmental measures also supported by the NAM. 

We wanted to take a moment to look closer at the Kigali Amendment’s bipartisan support and what its ratification means for the future of manufacturing: sustainable innovation and job creation. 

 

Bipartisan support for sustainability

With support from both sides of the aisle, the Kigali Amendment has been praised for the way it balances economic growth with demands for more environmentally minded practices. Additionally, a critical element of the signed amendment is how the legislation strengthens the United States’ position on holding China and India accountable as well for their environmental contributions. The amendment is said to also improve the United States’ international trade balance, putting US manufacturing in a better position to compete.

The effects of the enacted Kigali Amendment will help contribute to a half-degree Celsius drop in global temperature by the century’s end, according to POLITICO Pro. Kigali adds to the 2020 legislation requiring the EPA to issue rules that gradually reduce nonessential hydrofluorocarbons (HCFs) by 85 percent by 2036, accelerating the more sustainable environmental impacts manufacturers were already pushing for. 

 

Jobs and innovation

The Kigali Amendment is projected to create 33,000 new US jobs, raise US exports by 25 percent, and inject $12.5 billion into the US economy thanks to its emphasis on finding and implementing innovative alternatives to HCFs. Sustainable innovation is proving a lucrative way for many manufacturers to solve talent shortages and bring younger candidates into their organizations with a compelling business priority at the helm. 

The NAM’s advocacy, which was integral to seeing the amendment through to ratification, helped shed light on the possibilities for legislation to both advance the environmental agenda as well as promote economic growth and job creation.

 “We were able to leverage our longstanding policy experience, strategic partnerships and our depth of relationships in the Senate to adeptly navigate the ever-changing and challenging politics,” said NAM Senior Vice President of Policy & Government Relations Aric Newhouse. “Ultimately, the NAM’s support and long-term engagement was able to shepherd this crucial priority for manufacturers across the finish line in a bipartisan way that doesn’t force a false choice between environmental protection and economic growth.”

We are excited to see what future legislation can be brainstormed, supported, and enacted with this same mentality, championing both the financial and sustainable success of manufacturers in the United States. 

Between an increase in jobs and more sustainable innovation, the Kigali Amendment ratification is great news for the manufacturing industry all around. If you’d like to take your manufacturing organization’s sustainability efforts to the next level, reach out to Simplus today to start discussing solutions with Manufacturing Cloud and Sustainability Cloud on the Salesforce platform. 

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Authors

David Rivas, SVP of North America, MFG and SURE
David Rivas
SVP of North America, MFG and SURE at | + posts

David is SVP of North America, MFG and SURE  at Simplus.

 

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