Full Title: How the Inflation Reduction Act Will Drive Global Climate Action
Author(s): Frances Colón, Anne Christianson, and Cassidy Childs
Publisher(s): Center for American Progress
Publication Date: August 17, 2022
Full Text: Download Resource
The Inflation Reduction Act puts the United States on track to meeting its Paris Agreement commitment and to reclaiming the mantle of global climate leadership.
When President Joe Biden rejoined the Paris Agreement on his inauguration day, the United States indicated its intent to lead the world in tackling climate change. Yet until the Inflation Reduction Act was signed into law on August 16, 2022, the United States had not taken the meaningful domestic action needed to reduce its emissions, which grew by 6.2 percent in 2021 relative to 2020 and overall remain second only to China.
The Inflation Reduction Act may change this reality. Although it is domestically focused—and includes several harmful provisions on drilling that demonstrate the ongoing power of the oil and gas industry—this law represents the single-largest investment in climate action in U.S. history and will profoundly alter the international landscape. Indeed, this historic legislation will help the United States reach its emission reduction commitments, increase U.S. competitiveness and spur a “race to the top” in the clean energy economy, reshape the security landscape, and, crucially, restore trust and legitimacy for the United States within the global climate community.