Biden’s Inflation Reduction Act

Yilian Jiang ’25

Christine Wu ’25

When president Joe Biden signed the Inflation Reduction Act into law earlier this year, he promised drastic steps toward combating climate change. The bill includes a $359 billion investment to fund environmental justice and climate solutions, setting a goal to reduce 40% of carbon emissions by 2030), a significant initiative in reversing the extensive damage of fossil fuel usage (Earthjustice, 2022). The Inflation Reduction Act aims to expand clean energy usage by focusing on several key objectives: making clean energy more accessible to everyone, funding the education and aid of low-income communities who are impacted the most by the ongoing climate crisis, restoring and preserving natural habitats, and funding sustainable agricultural technology. 

To fulfill these targets, the government intends to invest in clean energy technologies, helping the economy create jobs and enforce energy security. Citizens will also receive tax credits and rebates for purchasing electric vehicles and installing energy-efficient home systems. Transitioning to eco-friendly energy sources will make energy costs more stable compared to fluctuating oil prices and reduce the amount of greenhouse gas released into the atmosphere. By addressing multiple aspects of climate change, ranging from investments in futuristic green energies to preserving currently existing carbon forests and coastal communities, the bill offers robust solutions to the ongoing climate crisis.

Yet, a negative implication of the bill is the reintroduction of offshore oil and gas drilling opportunities in the Gulf of Mexico and Alaska as a prerequisite to wind and solar energy projects. Environmentalists fear that this will upset natural habitats and interfere with local communities. Andrew Gillick from Enverus, an energy analytics company, is one of many in his profession who are doubtful about the projected switch to fossil fuel independence. He states that “both supply and demand will increase over the next decade,” noting that “the folks that think oil and gas will be gone in 10 years may not be thinking through what this means” (Brown, Phillis 2022). The drilling would increase the amount of fossil fuel released into the atmosphere, which is the opposite of the bill’s intention. Thus, to ensure the transition to green energy runs smoothly, legislators must consider the effects of the implemented policies in the short and long term.

  If successfully carried out, The Inflation Reduction Act will represent the United States’ commitment to leading climate change initiatives on a global scale. Regardless of any criticism or praise, the Inflation Reduction Act’s plans remain optimistic. 

References

Brown, M., & Phillis, M. (2022, August 19). Climate change? The inflation reduction act's

surprise winner, the US oil and gas industry. USA Today. https://www.usatoday.com/story/news/nation/2022/08/18/climate-change-inflation-reduction-act-oil-gas/7837956001/  

What the inflation reduction act means for climate. Earthjustice. (2022, September 22).

https://earthjustice.org/brief/2022/what-the-inflation-reduction-act-means-for-climate