Report on the Inflation Reduction Act in the United States

The Inflation Reduction Act, a giant support scheme for green technology, was launched by President Biden in 2022. The act, often called the IRA, is also the main political policy for the climate issue in the United States, with the goal of reducing emissions to more than 50 per cent below the 2005 level by 2030.

The Inflation Reduction Act has created an intensive debate in the EU concerning the competitive situation: Will European industry be wiped out? Will European companies invest in the United States rather than in the EU?

Questions this report aims to answer include: how much is invested in green technology, what are the effects on the electricity system, how is the reduction of CO2 proceeding, and are the investors confident that the support will continue in the long term, in view of the upcoming elections?

This report is based on analysis and facts from researchers from different universities and institutes, but also on reports, analysis and media articles from the White House, Department of Energy and various think tanks. Observations and conclusions are from meetings, interviews and webinars with various stakeholders in Washington during October and November of 2023.

The author is Birgitta Resvik, member of Mistra Carbon Exit’s Board.

Download the report here: The Inflation Reduction Act in the United States is about to restructure the entire energy system