The Inflation Reduction Act is our last best hope for a greener planet.
Boy, what a summer! Crushing heat—80 million people in the US under heat alerts. The hottest weather in 120,000 years. Ocean temperatures are the highest on record. Fierce forest fires—32 million acres burned in Canada as of August 2. Smoke from those fires produced an air quality index in New York on June 7 of 405, rocketing past the previous high of 279, set in 1981..
Do we need any more evidence that climate change is accelerating? As Pogo said:
And yet. There is a huge partisan divide on climate change: 78% of Democratsnow describe climate change as a major threat to the country’s well-being, up from 58% a decade ago. By contrast, only 23% of Republicans consider climate change a major threat—a share that’s almost identical to 10 years ago.
Given that divide, it is hardly surprising that the most significant climate change mitigation effort in United States’ history — the Inflation Reduction Act’s (IRA) provisions that put us on the path to a low-carbon economy — is under sustained attack from the Republican party and their oil and gas industry overlords. Make no mistake, if we do not USE the green energy provisions of the IRA, we will assuredly LOSE them should the Republicans regain control of the Federal government. Don’t believe it? Read this piece. Or just sit with the headline for a moment:
We are in a knife fight to save the planet and our chance to make a better world for our children and our grandchildren.
So what are the environmental provisions in the IRA…and why is it such a big deal?
The Democrats have left behind punitive methods of encouraging behavioral change—a carbon tax - to positive ones - private sector green energy incentives in the form of a $369 billion investment in climate solutions. Some analysts expect that it will pay huge dividends: the total public and private spending mobilized by the IRA could amount to nearly $1.7 trillion over the next ten years. This is a BIG DEAL. Credit Suisse analysts report:
“.... the IRA magnifies the strategic advantages the country holds already – in natural resources, infrastructure, geologic storage, technical expertise and technology talent – and could enable the industry to become a dominant energy supplier in the low-carbon economy. The stacked benefits of the clean electricity and manufacturing tax credits would make US solar and wind the cheapest in the world between 2025-2030.”
While its future impacts will be massive, let’s focus on what we know already about the bill. Right now, the IRA is:
Expanding access to clean energy by making clean energy tax credits more accessible—and extending them by 10 years.
Creating jobs and increasing our country’s energy security by investing $60 billion in the U.S. manufacture of solar panels, batteries and other clean energy technologies.
Providing funding for low-income families to electrify their homes, including $9 billion in home energy rebate programs.
What will the Inflation Reduction Act mean for you? The IRA includes tax credits and rebates to help people electrify their homes and vehicles, including:
A 30% tax credit for installing residential solar panels.
Up to $7,500 for purchasing an electric vehicle.
Up to $14,000 for home energy efficiency upgrades, including up to $8,000 to install a heat pump.
Making these changes could help families save $1,800 per year on energy bills and make their costs more stable and predictable compared with volatile fossil fuel prices.
All of this is in line with what Americans say they want. According to the Pew Research Center, 7 in 10 Americans prioritize alternative energy development and carbon neutrality.
Aside from the personal benefits for each of us, the IRA achieves something very important— it puts us on the path to meeting our carbon goals. To be sure, it does not get us all the way to where we need to be: As this chart shows, we are still short of the US commitment made at the Paris Climate Accords—but it is great progress that puts us into a position of global leadership on an issue of vital importance to our planet:
Thanks Joe and the Democrats, for taking actions that speak louder than words!
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