Climate Crisis: Inflation Reduction Act

Climate Change is the single most existential threat to humanity we have ever faced, including nuclear weapons. – Biden

The Climate Crisis is not like anything we have ever faced, and the risks are unparalleled in history.

We cannot follow the traditional way of dealing with this problem, that is, wait until the consequences are obvious, it will be too late. – J Romm

Democrats are doing something about it, while Republicans are keeping their heads planted firmly in the sand.

One of the actions taken by the Biden Administration and the Democratic Led Congress was passing the Inflation Reduction Act (IRA). While it’s focus is on reducing our risk of future climate catastrophes which is good enough on its own, it was titled Inflation Reduction for a reason. The reason is this: massive investment in nascent technologies has been proven to significantly reduce the cost of such technologies, not just on a national scale where most of the investment is primarily focused initially, but on a Global Scale as well.

Because of the IRA, America is firmly on the path to meet our 2030 climate goals. With over $650bn in combined investment from the IRA, the CHIPS and Science Act, America will now “be able to reduce its emissions by 1bn tons of carbon annually – more than ten times the climate impact of any prior American legislation.”

Recent reviews by the Economist have criticized the Inflation Reduction Act for being too protectionist, a sentiment echoed by many European economists.

However, new analysis by the Boston Consulting Group is painting a different picture.

According to their review, “the IRA will be the most significant policy driver for global emissions reduction this century – or perhaps ever – and it comes not a moment too soon.”

The IRA will not only increase clean-energy production in the U.S., but will be a significant driver for clean-energy production Around the World.

Our international partners, therefore, “have nothing to fear from the IRA, and a whole lot to gain.”

Within America, and in many disadvantaged communities, “we are already seeing the deployment of low-carbon technologies of clean-energy manufacturing,” coming up to scale.

According to a recently released editorial by the Economist, the “new and exponential scale of this investment will drive down the cost of deploying clean energy everywhere. Given projected spending on clean energy worldwide, more than $120bn can be saved globally by 2030.”

Previous public investments in technologies such as wind and solar have led to a significant reduction in prices “by 60% and subsequently unlocked deployment around the globe. Solar has become the cheapest form of new energy installation. The IRA is projected to drive hundreds of gigawatts per year of American wind and solar wind deployment, sparking investments globally.”

The main point here is that significant public investment in new technologies on this scale by the government is expected to Significantly Reduce the Cost of implementing Climate Crisis Fighting measures across the globe, as well as providing new and better, clean and renewable sources of energy that we all can enjoy.

Realizing these benefits on a global scale will require international collaboration which the administration has been supporting and bolstering at every level. Biden continually receives the highest ratings from our international partners in terms of his effectiveness and commitment to restoring and building upon America’s International Relations.

According to the recent article from the Economist:

“The IRA may transform global growth, spurring a virtuous cycle of innovation for good that spans the globe. This is an inflection point in meeting the world’s decarbonisation imperatives, and American action in the past two years will help boost clean energy all around the world.”

This is High Praise coming from the Assistant to the President and Director of the National Economic Council, Brian Deese; the Assistant to the President for National Security Affairs, Jake Sullivan; and the Senior Adviser to the President for Clean Energy Innovation and Implementation, John Podesta.

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