Inflation Reduction Act

Inflation Reduction Act

The Inflation Reduction Act of 2022 is a landmark climate bill that aims to reduce the rate of global warming and ultimately combat the climate crisis. It is the first federal law to recognize the harmful effects of climate change and to establish a framework for ambitious action to limit the rise in global temperature.

The Act requires an economy-wide, long-term strategy to reduce greenhouse gas emissions and promotes the use of renewable energy sources. It aims to reduce emissions by 40 percent below 2005 levels by 2030, and by 80 percent by 2050. It also requires the federal government to invest in clean energy infrastructure and technologies, such as electric vehicles and renewable energy sources such as solar and wind. In addition, it provides incentives for states to develop climate plans that are tailored to their local needs and resources.

The Act also establishes a framework for international cooperation, including a commitment by the United States to assist developing nations in their efforts to reduce emissions. In addition to helping countries strengthen their existing climate policies and transition to renewable energy sources, this includes providing financial and technical assistance.

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On August 16th, 2022, President Biden signed into law the Inflation Reduction Act (“IRA”), one of the most ambitious and potentially impactful climate policies in US history. This marks a shift in US climate action and, by putting emissions firmly on a downward trajectory, it sends a global signal that the world’s largest historical emitter is now beginning to meet its responsibilities.