Historic $369 Billion Investment in Climate Solutions Preserves a Pathway to Keep Global Warming Below 1.5°C

“EESI applauds the enactment of historic investments in climate solutions,” said EESI Executive Director Daniel Bresette. “The reconciliation bill passed by Congress and signed into law today will cut household energy bills, create quality jobs throughout the United States, jump-start emerging clean energy technologies, and cut greenhouse gas emissions.

“These investments come just three months before the international climate talks in Egypt. Congress and the Biden-Harris Administration have demonstrated to our international partners that we are serious. I hope this law will encourage world leaders to make more ambitious climate commitments, followed by their own transformative investments, and provide adequate support for decarbonization and climate adaptation efforts by developing countries.

“The IRA, alongside the Infrastructure Investment and Jobs Act, makes me optimistic about our ability to address the climate crisis. But there remains a lot to do, and Congress must continue to build on this momentum by delivering additional investments and policies to meet our Paris Agreement goals and doing so in an equitable way. EESI will double down on providing policymakers educational resources about the impacts of these investments and their multiple benefits across the U.S. economy.”

The Inflation Reduction Act (IRA) will provide $369 billion to combat the climate crisis over the next 10 years and is expected to reduce carbon emissions by 40 percent by 2030 according to a joint statement released by Senate Majority Leader Chuck Schumer (D-N.Y.) and Senator Joe Manchin (D-W.Va.), who hammered out the compromise. While the legislation includes provisions related to fossil fuel development, it will expand tax credits for clean energy and electric vehicles, boost energy efficiency, establish a national climate bank, support climate-smart agriculture, bolster production of sustainable aviation fuel, reduce air pollution at ports, and invest $60 billion to advance environmental justice priorities.

See EESI’s statement following the Inflation Reduction Act’s Senate passage on Sunday, August 7.