Report Finds US Carbon Emissions Reduction Rate has Doubled Since the Inflation Reduction Act was Passed

By Better Today On Apr 4, 2024

TL/DR –

Since the passage of President Joe Biden’s Inflation Reduction Act (IRA) in 2022, the rate of carbon emissions cuts in the United States has doubled, according to a report by the Clean Investment Monitor. Private investment in clean energy and transportation in the U.S. reached $67 billion in Q4 of 2023, a 40% increase from the same period in 2022. Despite the progress, experts argue that more needs to be done to reach net-zero by 2050, with some sectors struggling to implement the IRA due to regulatory hurdles and challenges related to development and expansion.

Solar Panels Installation at AltaSea Research Facility, Los Angeles

A worker installs solar panels at a 4-acre solar rooftop at AltaSea\’s research and development facility at the Port of Los Angeles in Los Angeles, California on April 21, 2023. Mario Tama / Getty Images

US Carbon Emissions Cuts Doubled Since IRA Passage

The US has seen a doubling in the rate of carbon emissions cuts since President Joe Biden’s Inflation Reduction Act (IRA), as per a new report by Clean Investment Monitor.

Boost in Renewable Energy Projects Utilizing IRA Benefits

Since the IRA’s inception in 2022, over 80 wind, solar and energy storage projects have benefited from the law’s tax credits and direct payments, according to Reuters.

Record Clean Energy and Transportation Investment

The US set a record in Q4 of 2023, with clean energy and transportation investment reaching $67 billion — a 40% increase from the same period in 2022. Clean investment has risen to 5% of all private investment in the US, from 3.7% at the end of 2022.

Huge Investment in Electric Vehicles and Green Energy

The Bipartisan Infrastructure Law and IRA invested $239 billion in electric vehicles (EVs), green energy, carbon management and electricity for US buildings last year, as the report states.

Experts Warn More Efforts Are Needed

Experts highlight that more work is needed to achieve net-zero by 2050. Jesse Jenkins, an energy systems engineer with Princeton University, believes that the IRA should be tripling the pace of reductions to meet 2030 climate goals.

Challenges and Opportunities

Despite some implementation challenges, the IRA has motivated Asian and European companies to increase their investments in the US. However, some sectors like carbon sequestration, hydrogen, geothermal and nuclear energy are yet to see significant encouragement.

IRA’s Impact on Carbon Emissions

The IRA has resulted in an annual reduction in US carbon emissions of four percent — twice the pace of the year before its passage, according to an article published last year.