Inflation Reduction Act
The Inflation Reduction Act of 2022 is likely the most aggressive step taken in the US policy realm towards emissions reduction. The Act includes numerous components including lowering the price of prescription drugs, increasing tax rates for large corporations, funding for IRS tax enforcement, and lowering the budget deficit. But the key part from a climate point of view is to promote the use of clean energy, thus reduce emissions and set the US on a path towards meeting its Paris climate goals. The Act includes significant funding for installation of solar panel by households using tax incentives and increased tax rebates for purchases of electric vehicles. More broadly, the Act includes funding for states and local municipalities to install charging stations for electric vehicles and to convert to renewable energy production. The Act also includes tax incentives for corporations to produce renewable energy. Finally, there is funding for cutting-edge technologies such as carbon capture and storage and clean hydrogen. The EPA has estimated that the Inflation Reduction Act will reduce US CO2 production from 2005 levels by 35 to 43 percent by 2030. This is a start, but more policies will be required in the near future if we are to limit warming to 1.5 oC.
