It’s time for an all-out national mobilization to defeat the climate crisis.

President Biden and Congress must lead the charge to defeat the climate crisis and build a thriving, just and inclusive clean energy future. Join our work to help make it happen.

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It’s time for an all-out national mobilization to defeat the climate crisis.

President Biden and Congress must lead the charge to defeat the climate crisis and build a thriving, just and inclusive clean energy future. Join our work to help make it happen.

What Is the Climate Impact of the Inflation Reduction Act?

Senate Democrats must move immediately to pass this bill, and House Democrats must swiftly follow suit to get the legislation to the president’s desk for his signature.

This week, U.S. Senators Chuck Schumer (D-NY) and Joe Manchin (D-WV) put forward a bill—the Inflation Reduction Act of 2022 (IRA)—containing historic investments in confronting climate change and building America’s clean energy economy. This legislation will fight inflation by driving down energy costs, provide economic opportunity and capacity-building investments in disadvantaged communities, create good jobs, and give the U.S. a fighting chance of cutting greenhouse gas pollution in line with President Joe Biden’s commitments. Senate Democrats must move immediately to pass this bill, and House Democrats must swiftly follow suit to get the legislation to the president’s desk for his signature. 

At the same time, this bill represents a compromise reached after a lengthy and difficult negotiation. As such, it contains some concerning giveaways to fossil fuel companies that will pollute American communities and the climate. However, taken as a whole, the full $369 billion package of climate investments represents a historic breakthrough for climate action and an essential down payment in building a more just and thriving clean energy economy. According to an analysis from Senate Majority Leader Schumer’s office, the IRA would cut climate pollution by 40% below 2005 levels by 2030. A separate independent analysis, conducted by the Rhodium Group, offers a 37.5% reduction as its central estimate for emissions reduction by 2030. A third analysis, conducted by the firm Energy Innovation, found a central estimate of a 39% reduction in emissions by 2030, and that “further, for every ton of emissions increases generated by IRA oil and gas provisions, at least 24 tons of emissions are avoided by the other provisions.” The Energy Innovation analysis also found the IRA would create up to 1.5 million jobs and help prevent up to 3,900 premature deaths by 2030.

These analyses show that the IRA, evaluated as a whole, would deliver enormous progress toward meeting U.S. climate goals. The IRA, combined with greater federal executive action and continued leadership from state and local governments, could put the U.S. on the path to meeting President Biden’s target of a 50-52% reduction in climate pollution by 2030. This bill is a compromise, but it is also necessary. 

Our new memo lays out the toplines of this budget reconciliation legislation, with standout policies in key economic sectors and policy areas. From clean energy tax credits and consumer rebates, to programs advancing environmental justice and domestic advanced energy manufacturing, the IRA takes a comprehensive approach to investing in America’s clean energy future. Democrats in Congress must pass the IRA without delay.

PDF last updated August 10. 

Download the Memo Now