Learn more about the big, bold climate investments in the Inflation Reduction Act
As we saw in 2021, scorching heat waves broke records and took lives across the US, as did wildfires, hurricanes and drought. We need President Biden and Democrats in Congress to meet this moment with bold action for climate, jobs, and justice. Our challenge is very clear: to avoid the worst impacts of climate change, the global community must cut greenhouse gas pollution in half by 2030, and eliminate carbon pollution by mid-century. President Biden, Senate Majority Leader Schumer (D-NY), and now Senator Joe Manchin (D-WV) have agreed to advancing bold climate investments in the Inflation Reduction Act of 2022 (IRA) through reconciliation and the window of opportunity is closing fast. This bill, combined with executive, state, and local action, could put the U.S. on the path to meeting Biden’s goal of 50-52% reduction in climate pollution by 2030.
Now, it's up to us to make sure our leaders deliver.
The top takeaways:
According to analysis by Sen. Schumer’s office, this bill would cut emissions 40% below 2005 levels by 2030. Independent modeling by the Rhodium Group offers a central estimate of 37.5% emissions reductions. The IRA includes a historic $369 billion in climate and clean energy investments that will fight inflation by driving down energy costs, provide economic opportunity and capacity-building investments in disadvantaged communities, create good jobs, and give the U.S. a fighting chance of cutting greenhouse gas pollution in line with President Joe Biden’s commitments.
This bill is an imperfect compromise resulting from long and challenging negotiations. It contains concerning giveaways to fossil fuel companies that will harm frontline and fenceline communities. We must continue to do everything in our power to end oil and gas leasing on federal lands and waters. In its totality, however, the IRA is an enormous opportunity to build a more just and thriving clean energy economy. According to Energy Innovation, “for every ton of emissions increases generated by IRA oil and gas provisions, at least 24 tons of emissions are avoided by the other provisions.”
Driving economy-wide decarbonization through new and extended tax credits. The bill extends the current federal investment and production tax credits (ITC and PTC) for solar and wind energy until 2025, and establishes a new technology-neutral ITC and PTC for all zero-carbon (and some very low-carbon) electricity generation technologies, from 2025-2032. In addition, the bill includes DOE loan guarantees to leverage private sector investment in clean electricity, funding to help rural communities deploy more renewables, and billions in electric transmission investments. Beyond clean electricity, the IRA includes major tax credits and rebates for clean transportation and clean buildings. Read more details on the provisions here.
Directing $60 billion of investments toward environmental justice priority programs. The impacts of pollution and climate change do not fall on all communities equally, rather Black, Indigenous, people of color, and low-income communities have suffered and continue to suffer the most. The IRA would fund a variety of programs that reduce pollution and make zero-emission infrastructure more affordable and make related economic development more equitable. And Biden’s Justice40 initiative will apply across the whole suite of federal climate and clean energy investments, raising the total implemented value of investments toward disadvantaged communities much higher than $60 billion.
What needs to happen next:
While imperfect, the Inflation Reduction Act presents our best opportunity for vital federal investment to address the climate crisis.
The IRA’s passage is essential to our ability to keep warming below catastrophic levels, and to building a more just, affordable, and secure clean energy economy.
Now it is up to Majority Leader Schumer, Speaker Pelosi, and President Biden to carry this bill across the finish line and prove to the American people that they can deliver on the bold climate agenda that they ran, and won on, in 2020.
To secure the Biden climate and environmental justice agenda, fight fossil fuel-driven energy inflation, create good clean energy jobs, and protect countless Americans from escalating climate disasters, CALL YOUR SENATORS AND HOUSE REPRESENTATIVES and urge Congress to move quickly.