Energy and climate firm Energy Innovation has just released its assessment of the Inflation Reduction Act of 2022 (IRA) on emissions, jobs and health impacts.
The firm has a strong focus on promoting the decarbonization of the economy by means of unbiased and non-partisan research and analysis.
One of the main takeaways of its assessment of the Inflation Reduction Act is that some of its provisions may help reduce the CO2 emissions of the US by up to 41% in 2030, compared to 2005 levels.
The IRA itself was officially released on July 27, 2022, by the United States Senate and includes a record-breaking $369 billion funding for clean energy and climate provisions.
These provisions range from clean energy and electric car tax credits all the way to major investments in local manufacturing of clean energy technologies and environmental justice.
In addition, the new legislation will require auctions for oil and gas on federal lands and federal waters, as well as the completion of a number of auctions that were scheduled to be held this year but had been cancelled previously.
Based on the information presented in the IRA, Energy Innovation was able to calculate the estimated impact the act will have on reducing emissions, creating jobs and public health.
As a result of these estimates, Energy Innovation has concluded that the Inflation Reduction Act is by far the most meaningful climate and clean energy legislation in US history.
Hence, if passed, the IRA has every chance of enabling the US to achieve its nationally determined commitments (NDCs) under the Paris Agreement.