In July, a pair of Senators gathered reporters in the U.S. Capitol Building to deliver a message to the President. It was, to be certain, something of a miracle. Two Democrats were desperate and worried that it could be years before Congress tackled climate change in a meaningful way. It will be a decade before we have a climate majority according to Sen. Jeff Merkley. "I am worried."
The Inflation Reduction Act was passed by the Senate less than three weeks later. The House of Representative is expected to send the bill to Biden, who will sign it into law.
The legislation will accelerate the decline in U.S. emissions, putting the country within reach of the Biden Administration's goal of halving emissions by 2030. That goal sets a destination for all U.S. climate policy because it shows how much pain and destruction the world can avoid from climate change. There is a framework for how the U.S. will tackle climate change until that deadline. Over the next decade, it will invest more than $360 billion in energy and climate change programs. battle lines are forming over the future of fossil fuel production and how to advance environmental justice as a result of the bill.
The bill will help convince other countries that the energy transition is irreversible and will give the US newfound credibility as a climate leader on the international stage. It is not clear how well every climate provision of the Inflation Reduction Act will work, but what is clear is that once signed into law, it will jumpstart an economic transformation and rejigger international climate politics.
The approach to cutting US emissions is the result of decades of trial and error. Climate advocates learned that upsetting big business could doom legislation when Bill Clinton tried to pass an energy tax. President Barack Obama supported congressional efforts to pass cap-and-trade legislation endorsed by big business, but when the bill failed in the Senate, climate advocates learned they would need to foster grassroots support to get legislation across the finish line.
The way for the inflation reduction act was paved by both of these lessons. Incentivizing businesses to decarbonize is what it uses. It promises to create jobs and investment in America's communities, making it more politically palatable for a wide swath of the voting public.
Tax credits for companies that build wind and solar power are part of the legislation. The decarbonized energy system will be created with the help of these credits, which will last for ten years. A number of industries will be told to decarbonize. Credit will be given to airlines for buying fuel that's lower in carbon dioxide. Financial incentives will be given to companies that capture and store carbon dioxide. Dan Lashof is a director at the World Resources Institute It gives long-term investment certainty, which will help transform our energy system.
These changes will affect the economy and your backyard. New jobs and inspiring new companies will be created as a result of the surge in innovative technologies. Private companies can be given up to $250 billion by the Department of Energy for clean energy programs. Ten years ago,Tesla received a loan from the same program. If there are other provisions in the inflation reduction act, the next clean technology giant could benefit from a similar loan.
The bill will affect you as a consumer. Americans can take advantage of tax incentives to make their homes more energy efficient. The lower cost of renewable power will lower consumer energy prices. Buyers of electric vehicles can get a tax credit of up to $7,500. Many consumers who aren't currently thinking of buying an electric car may find that their next vehicle will be an electric car.
Democrats and climate activists had to compromise in order to keep their caucus together. The legislation allows a continued reliance on fossil fuels if companies capture the carbon emissions. Environmental justice activists say that these technologies won't help the communities that are most affected by pollution from fossil fuels. The legislation requires the federal government to sell some federal land for oil and gas drilling. The Inflation Reduction Act may help the US say that the energy transition is complete, but more work needs to be done.
The Inflation Reduction Act is the opening act of a new era in the fight against climate change.
If you want to write to him, you can email him at justin.worland@time.com
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