President Joe Biden signed a climate, healthcare, and tax bill called the Inflation Reduction Act (IRA) into law on August 16, 2022. The new law significantly impacts the climate sector regarding energy costs, farming, and the economy, leading the U.S to 40% emissions reduction by 2030. This is the most expensive and significant investment in the climate in all of U.S. history.
The law is aimed at various sectors of the climate community and incentivizes the average consumer to make more eco-friendly choices. By providing tax incentives and rebates they are lowering energy costs for Americans by helping them switch to greener vehicles and energy-efficient appliances. In addition, through policies, the law supports energy reliability and cleaner production by relying more on America’s clean energy manufacturing to create more American jobs and rely less on China. They are also investing in decarbonizing the economy by providing funding for novice climate solutions. To make sure that lower-income communities aren’t left behind on the transition to clean energy, investments are going into disadvantaged communities. Finally, the government is supporting resilient rural communities by providing funding to help them adjust to the changing weather caused by climate change.
Experts have said that the IRA is set dramatically to help achieve Biden’s goal of eliminating half of the emissions by 2030. However, the IRA is not only to influence America’s climate involvement but will impact other countries’ responses to climate change. The IRA set the U.S. as the leader of the climate movement on the international stage. While China, the U.S., and the EU are a few of the countries with the highest carbon emissions, shortly, lesser developed counties will begin to contribute more emissions. The IRA is predicted to lower the global costs of green technology like solar, hydro, and wind energy. By lowering the costs, smaller countries would be able to also make the switch to eco-friendly alternatives. While the law might be domestic, it has significant international impacts.
“The bill I’m about to sign is not just about today, it’s about tomorrow. It’s about delivering progress and prosperity to American families. It’s about showing the American and the American people that democracy still works in America, not just for the privileged few, but for all of us,” President Biden said as he signed the bill.