It’s time for an all-out national mobilization to defeat the climate crisis.

President Biden and Congress must lead the charge to defeat the climate crisis and build a thriving, just and inclusive clean energy future. Join our work to help make it happen.

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It’s time for an all-out national mobilization to defeat the climate crisis.

President Biden and Congress must lead the charge to defeat the climate crisis and build a thriving, just and inclusive clean energy future. Join our work to help make it happen.

What Is the Climate Impact of the Inflation Reduction Act?

Analyses show that the IRA, evaluated as a whole, will deliver enormous progress towards meeting U.S. climate goals, and in building a just and thriving clean energy economy.

Originally published July 29, 2022. Updated August 23, 2022.

Congress has passed and President Joe Biden has signed the Inflation Reduction Act of 2022 (IRA)! This new law advances historic investments in confronting climate change and building America’s clean energy economy. The IRA will fight inflation by driving down energy costs, provide economic opportunity and capacity-building investments in disadvantaged communities, create good jobs, and give the US a fighting chance of cutting greenhouse gas pollution in line with President Biden’s commitments. 

At the same time, the IRA represents a compromise reached after lengthy and difficult congressional negotiations. As such, this package is not a silver bullet to combatting the climate crisis or addressing environmental justice. Many vulnerable communities will continue to be harmed by fossil fuel extraction, particularly BIPOC communities in the Gulf South and Alaska. But the investments in this bill will help prevent the worst of the climate crisis, and will transform the American economy to run on less polluting sources of energy. This package of approximately $370 billion in federal climate investments represents a historic breakthrough and an essential down payment towards building a more just and thriving clean energy economy. 

According to an analysis from Senate Majority Leader Schumer’s office, the IRA will help cut climate pollution by 40% below 2005 levels by 2030. The Biden Administration has calculated a similar 40% estimate. These estimates have also been corroborated by independent experts. One analysis, conducted by the Rhodium Group, offers a 37.5% reduction as its central estimate for emissions reduction by 2030. A second analysis, conducted by the firm Energy Innovation, found a central estimate of a 39% reduction in emissions by 2030, and that “further, for every ton of emissions increases generated by IRA oil and gas provisions, at least 24 tons of emissions are avoided by the other provisions.” And a third analysis, by the Rapid Energy Policy Evaluation and Analysis Toolkit (REPEAT) Project at Princeton University, found that the IRA would deliver a 41% reduction in emissions by 2030.

Furthermore, expert analysts also point to this bill delivering massive economic and public health benefits. The IRA would reduce inflation, according to Moody’s Analytics and other economic experts, and help Americans cut their energy costs by $200-$1000 per year by 2030, according to Resources for the Future and Rhodium. An analysis commissioned by the BlueGreen Alliance, from the Political Economy Research Institute (PERI) at the University of Massachusetts Amherst, found that the bill would grow the workforce by 9 million jobs over the coming decade. And the aforementioned Energy Innovation analysis also showed the IRA would help prevent up to 3,900 premature deaths by 2030. 

These analyses show that the IRA, evaluated as a whole, will deliver enormous progress towards meeting U.S. climate goals, and in building a just and thriving clean energy economy. The IRA, combined with greater federal executive action and continued leadership from state and local governments, could put the U.S. on the path to meeting President Biden’s target of a 50-52% reduction in climate pollution by 2030.  

This memo lays out the toplines of this budget reconciliation legislation, with standout policies in key economic sectors and policy areas.  In addition, here is a comprehensive spreadsheet, compiled by the Evergreen Policy Team, summarizing all of the climate provisions in the IRA. Much of the Inflation Reduction Act was directly informed by the policies that Evergreen has proposed and advocated for, including in its “Evergreen Action Plan,” and in subsequent policy papers, like the “Clean Jumpstart Plan” published with Data for Progress.  From clean energy tax credits and consumer rebates, to programs advancing environmental justice and domestic advanced energy manufacturing, the IRA takes a bold and comprehensive approach to investing in America’s clean energy future.

PDF last updated August 23. 

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