The Inflation Reduction Act encourages electric vehicle purchases and renewable energy production.
An estimated US$391 billion was allocated under US president Joe Biden’s Inflation Reduction Act.
President Joe Biden’s IRA, which took effect in August 2022, provides billions of dollars in tax credits to help consumers buy electric vehicles and companies produce renewable energy. The US’ annual carbon dioxide emissions should decline to a median of 3,300 metric tonnes in 2035, below the 4,100 metric tonnes projected without the IRA – equivalent to shutting 214 coal-fired power plants – and down from 6,130 metric tonnes in 2005, the report said.
It projected CO2 emissions from electricity production in 2030 declining by 49% to 83% from 2005 levels, largely driven by greater use of solar and wind output.