The introduction of the Biden administration’s Inflation Reduction Act (IRA) has spurred a rapid acceleration of the green transition, supported by high levels of domestic manufacturing and a rapid increase in the country’s renewable energy capacity. The IRA is the most far-reaching U.S. climate policy to date and is highly competitive, with many other countries around the globe now racing to develop their own climate policies. The provision of widescale financial incentives for decarbonisation efforts, the uptake of green energy, and domestic manufacturing has attracted high levels of investment across several sectors, which are expected to continue growing for several years.Â
The IRA provides almost $400 billion in federal funding to clean energy. It encourages companies to invest in green energy and clean technology by offering grants, tax breaks and other financial incentives. Since the launch of the IRA,…
