The Inflation Reduction Act (IRA), signed into law by President Joe Biden in August 2022, is considered to be the largest investment in combating climate change in U.S. history. While the full impact of the act has yet to be determined, there are some noteworthy takeaways to contemplate.
Based on a Department of Energy analysis published on August 18, 2022, on their official website, the bill could reduce emissions by about 40 percent by 2030. Climate experts agree that the act is a promising development, but more comprehensive action is needed to achieve the Paris Agreement’s two-degree limit for global temperature change.
The act’s $43 billion in tax incentives include measures such as an electric vehicle tax credit that gives consumers $7,500 per vehicle, but only if the final assembly occurs in North America, according to an article by Environmental Leader on March 13, 2023. This US-centric approach has prompted concerns about the country’s readiness to meet such massive domestic demand. The IRA is likely to impact politics as much as the economy, and a more stable economy will drive clean-energy innovation.
The IRA’s impact on renewable energy can create historic opportunities for those who want to lead clean-energy breakthroughs. Individuals with the strategic knowledge and analytical skills to make the appropriate decisions will be able to progress their professions or businesses while also contributing to some of the most significant energy and climate advancements in our lifetime.