On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (H.R. 5376), a historic bill that represents the largest investment ever in climate action from the U.S. Congress.
The legislation includes $369 billion for climate and energy provisions and will contribute to reducing carbon emissions from 2005 levels by approximately 40 percent by 2030 by accelerating the decarbonization of electricity production and other carbon-intensive sectors. While this legislation will transform the climate and energy landscape in the U.S., given its scale and breadth, all of the potential impacts and opportunities may not be readily apparent.
The Inflation Reduction Act (IRA)’s climate investments are broad and reach across many sectors, including provisions to address emissions reductions for the energy, transportation, industrial, and agricultural sectors. ERM has in depth experience supporting clients across all the sectors of the U.S. economy affected by the Inflation Reduction Act of 2022, partnering with the world’s leading organizations to bring innovation solutions to sustainability challenges.
In this issue brief, ERM provides an analysis of key IRA provisions that we see as most critical to companies and industries directly and indirectly affected by this historic legislation.