With the Senate passing the Inflation Reduction Act of 2022 last night and passing the House of Representatives this weekend, all but rest assured, it is likely that the United States will take significant – though not comprehensive – action by the National climate change association.
The bill is expected to cut US carbon emissions by 40% from 2005 levels by the end of the decade. That number falls short of President Joe Biden’s goal of 50% and insufficient to help put the world on the preferred path of warming of no more than 1.5 degrees Celsius. But it’s still an important step, one that can restore confidence in global climate agreements.
It will also give a huge boost to climate technology, a very hot and seem to be immune to cold feelings.
The new version, adopted after talks with Senator Kyrsten Sinema, a Democrat from Arizona, contains a few changes. Company minimum tax reported adjusted to be more tolerant of manufacturers and tax changes on transfer interest it’s not clear whether investors are interested in all of that with them anyway. It has been replaced with a 1% excise tax on share buybacks that will go into effect next year. Sinema has also successfully lobbied $4 billion for Western states to combat the super-drought they are currently experiencing.
The rest of the huge bill, which we mentioned in detail, for the most part remains the same. That means getting people to buy electric cars and heat pumps; carrots for companies to establish domestic supply chains for batteries, solar panels and wind turbines; and $20 billion to help the agriculture industry overhaul itself to reduce emissions.
But will the bill be enough? Among realists, the majority agree that the Inflation Reduction Act is better than nothing. It may not be perfect, but there is still time to improve it, right?