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On 16 August 2022, President Biden signed the Inflation Reduction Act (IRA) into law, legislating a range of changes aimed at addressing climate change, lowering prescription drug prices, imposing a minimum corporate tax rate and reducing the federal budget deficit. Despite its politicised label as an inflation reduction initiative, the legislative changes primarily channel US$370bn in climate related incentives to facilitate the transition of the US towards CO2 emissions reductions of 40% by 2030.[1] The changes are expected to drive US$3.5tn in capital investment into new US energy infrastructure over the next decade based on preliminary modelling from Princeton University.[2]
Citations
- U.S. Department of Energy.
- Estimate according to Zero Lab at Princeton University.