One year after the passing of the Inflation Reduction Act (IRA) of 2022, officials are starting to get a clearer idea about whether the climate bill is having the planned impact.
Initial analysis indicates that progress is being made, though maybe not at the level that was hoped, according to grist.org.
Federal agencies are beginning to distribute the $369 billion that was targeted for clean energy tax credits and funding for climate and energy programs. An independent report from the Rhodium Group was recently published that shows the climate progress spurred on by the IRA and where the legislation has yet to gain ground.
The Rhodium Group tracks greenhouse gas emissions produced by the U.S. economy.
The report found that the IRA and state-level climate bills will drive emissions down between 29 and 42 percent in 2030 compared to 2005 levels, with greenhouse gas emissions decreasing between 32 and 51 percent by 2035.
Before the IRA, the report said the nation was on track to cut emissions by 26 to 41 percent by 2035. Rhodium described the reductions as “a meaningful departure from previous years.”
The report also says that solar and wind energy have fallen by nearly 40 percent and 55 percent, respectively, because of the passing of the IRA. It also predicts that electric vehicles will comprise between a third and two-thirds of all passenger vehicles.
Even with the progress, the report indicates that the promising numbers do not keep the U.S. on pace to reduce emissions 50 to 52 percent by 2030 under the Paris Agreement.
Dave Lubach is executive editor of the facilities market.
