IRA spurs renewable buildout, but Biden climate goals remain elusive - The Hill

IRA spurs renewable buildout, but Biden climate goals remain elusive | The Hill

| A year after its adoption, the Inflation Reduction Act has bolstered the adoption of carbon-free power, but the country does not yet appear to be on track to meet President Biden’s climate goals.|

| The IRA provided significant tax credits for low-carbon and carbon-free energy sources including wind, solar, nuclear, carbon capture technology and biofuels, as well as for electric vehicles.Recent reports have found that these subsidies are having an impact.
The American Clean Power Association, a renewable energy lobby group, recently issued a report finding that the year since the IRA’s passage saw more investment in the sector than the past eight years combined. Meanwhile, a new report from research provider BloombergNEF projects that wind and solar power will comprise just less than half of all power generation by 2035 and 64 percent in 2050 — a significant jump from the 12 percent they made up in 2021.
In total, the Bloomberg report projects that electricity coming from zero-to-low emission sources including wind, solar, nuclear and gas with carbon capture will make up 87 percent of the power grid by 2035.
But an Energy Department report also says that the U.S. is currently not on track to meet Biden’s climate goals.
It currently expects U.S. greenhouse gas emissions to be 35 percent to 41 percent lower in 2030 than they were in 2005, not quite reaching the president’s goal of cutting emissions in half.
However, the report said that without the IRA and the Bipartisan Infrastructure Law, emissions would only reach 27 percent lower than 2005 levels, so it does appear that the climate law is making a difference.
Similarly, the Bloomberg report estimates that U.S. emissions will be 22 percent higher than Biden’s goal in 2030. In 2050, it projects they will be about 54 percent lower than they were in 2021 — a significant drop but still not the net-zero level Biden has said he hopes to achieve by midcentury.
Tom Rowlands-Rees, BloombergNEF’s head of North America analysis, told reporters Wednesday that the incentives or “carrots” provided by the IRA should be met with “sticks” or penalties that push industries to act in a climate-friendly manner.
“We appreciate that in Washington, it’s very hard to mandate things,” he added. “But it’s still worth trying because that is what is needed next.”
Read more in a full report at TheHill.com. |

| Welcome to The Hill’s Energy & Environment newsletter, we’re Rachel Frazin and Zack Budryk — keeping you up to speed on the policies impacting everything from oil and gas to new supply chains.|