Climate change protesters at a demonstration in Paris streets (2018)|Jeanne Menjoulet|CC BY-ND 2.0
The Inflation Reduction Act of 2022. Layers are many—climate, health care, inflation, taxes. Climate change, of these, has little opposition.
The ruling Democratic party of the world's largest greenhouse gas emitter has validated a promise to spend $369 billion to cut emissions by nearly half within eight years.
It is highly unlikely the bill will not pass through the Democrat-majority House.
So, environmentalists have started popping champagnes, believing this could set a precedent for the rest of the world.
EU turn
Michael Pahle of the Potsdam Institute for Climate Impact Research says the act is relevant to the European Union, which wants to adopt “the world’s most ambitious climate policy” in the form of the “Fit for 55” package.
“The EU’s policy can only succeed—economically and politically—when major emitters and trade partners take similar action,” Pahle says.
The EU has yet to set a budget to slash its targeted emissions by 55% by 2030.
Studies say EU member states would need to spend 350 billion euros (approx. $357 billion) more than they did between 2011 and 2020 to meet that target.
EV subsidy
Meanwhile, the bill has a provision for subsidies for those who purchase electric vehicles—a tax credit for the vehicle and a separate one for charging assets.
Opposers say this scheme is meant for only those already rich.
The average price of a new EV is over $54,000. With the $7,500 subsidy, “it's like giving everyone a thousand dollar [sic] gift card to the Rolex store, great, but where do we get the other 9 grand?” says New York columnist David Marcus.
Layered approach
University College London’s Simon Lewis, a professor of global change science, is impressed with the ambitious bill cleared by the US Senate in a tie-breaking vote Sunday.
“Part of that is a package tackling inflation. I think that shows the world how to get climate policy passed, by hitching it to things that really matter to ordinary people, to make sure it’s part of an overarching package to make life better for people,” he says.