inflation reduction
Newsletter
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The IRA boosts clean energy with a $240 billion investment, but more is needed
In the wake of the Inflation Reduction Act, a new analysis reveals a significant private sector response, multiplying government investments in clean energy nearly fivefold.
In short:
- The private sector's contribution of $5.47 for every government dollar has led to a surge in clean energy investment.
- Federal tax credits primarily fuel the $34 billion in government spending, with overall investments spanning various technologies.
- Despite substantial investment growth, experts caution that current levels may not suffice to meet the U.S.'s ambitious climate goals.
Key quote:
“It’s proving the value of the federal government taking the lead, putting in place policy that says, ‘This is the direction that we’re headed: supporting decarbonization, supporting clean energy.'”
— Hannah Hess, associate director of climate and energy at Rhodium Group
Why this matters:
The Inflation Reduction Act has catalyzed unprecedented investment in clean energy, underlining the federal government's pivotal role in steering economic transitions toward sustainability. This movement signals a robust push towards decarbonization and energy innovation, crucial for meeting national and global climate targets.
After passage of the Inflation Reduction Act, those in the trenches working on climate mitigation, climate solutions, clean energy and climate justice began to feel optimistic about their goals.
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Photo by Sungrow EMEA on Unsplash
Rising costs signal success for Biden's climate initiatives
The Inflation Reduction Act's clean-energy incentives are proving more effective than anticipated, leading to increased costs but potentially greater environmental benefits.
In short:
- The Inflation Reduction Act's cost has doubled due to its unexpected popularity and effective regulations, indicating a positive impact on reducing greenhouse gas emissions.
- Investments in clean-energy manufacturing, particularly in solar panels and electric vehicles, have surged, benefiting from the Act's tax breaks.
- The Act's success in promoting electric vehicle use and clean-energy manufacturing may lead to significant reductions in U.S. emissions, aligning with climate change goals.
Key quote:
The Inflation Reduction Act “will reduce the deficit over the long run by cutting wasteful spending on special interests, making big corporations pay their fair share and cracking down on wealthy tax cheats.”
— Michael Kikukawa, White House spokesman
Why this matters:
This development suggests a shift toward cleaner energy and reduced emissions, directly impacting air quality and public health. It also highlights a significant stride in national efforts to combat climate change, reflecting the broader global movement towards sustainable practices.
Be sure to read Douglas Fischer’s 2022 article explaining the Inflation Reduction Act.
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Photo by Ernie Journeys on Unsplash
The I.R.A. is Biden’s signature climate achievement. Many voters don’t know it
The president likes to talk about his climate agenda as an opportunity to create jobs. Polling shows that may be the wrong way to win over voters.
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'We're back, baby': New bill boosts US climate credibility
After a moment when hopes dimmed that the United States could become an international leader on climate change, legislation that Congress is poised to approve could rejuvenate the country’s reputation and bolster its efforts to push other nations to reduce greenhouse gas emissions more quickly.
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