The US Congress’s August approval of the Inflation Reduction Act (IRA) came as a surprise to most observers. With the mid-term elections just months away and no majority in Congress, no one expected new legislation to be passed. Yet, the Democrats and Republicans managed to reach a compromise. We discuss below the measures announced to promote the environmental transition, which is the centrepiece of the act.
Europe has much to gain from looking more closely at the modalities of the new US green industrial policy.
The IRA includes in particular $369bn in spending over a ten-year period in favour of decarbonisation, renewable energies and energy security. This is more than four times the amount that the 2009 American Recovery and Reinvestment Act devoted to investments in renewable energies and green technologies, making it the largest federal legislative package in US history in this area.
You can now read the full whitepaper at the link below
